New FTC Rule Aims to Restore Consumer Trust in Online Shopping by Banning Fake Ads and Reviews
The Federal Trade Commission (FTC) has introduced a groundbreaking rule designed to protect American consumers from deceptive online advertisements. This move marks a significant stride in the fight against fake online reviews, which have been a longstanding issue in the e-commerce sector.
Effort to Restore Consumer Trust
The FTC’s new rule, which came into effect this week, bans the use of fake online reviews with the aim of restoring consumer trust in online shopping. The problem of misleading reviews is widespread, impacting millions of American consumers every year.
Targeting Bots and AI Generated Reviews
First announced in August, the rule essentially criminalizes the sale or purchase of online reviews. It specifically targets fake reviews written by so-called bots or non-existent people and reviews generated by artificial intelligence (AI). This is an area where current legislation has struggled to keep pace with rapid technological advancements.
Stepping Up to Protect Consumers
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