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New FTC Rule On Fake Online Reviews Went Into Effect on October 21st Here's What You Can NOT Do: ? Fake or False Consumer Reviews ? Buying Positive or Negative Reviews ? Insider Reviews and Consumer Testimonials ? Company Controlled Review Websites ? Review Supprression ? Fake Social Media Indicators (Followers or Views) You can read more about the FTC's ban on fake online reviews below:

The Federal Trade Commission (FTC) has introduced a crucial regulation effective October 22, 2024, aimed at curbing deceptive practices in online reviews and social media influence, enhancing consumer protection and fair competition. Key Takeaways: 1. **Ban on Fake Reviews**: The creation, purchase, or distribution of fake consumer reviews is strictly prohibited, including AI-generated reviews. 2. **Disclosure Requirement**: Companies must disclose if reviews are from employees, executives, or their relatives to ensure transparency. 3. **Negative Review Suppression**: Businesses cannot suppress negative reviews without valid reasons or use intimidation tactics against unfavorable feedback. 4. **Social Media Engagement Regulation**: It is illegal to buy or sell fake social media engagement that misrepresents a person or brand's true influence. 5. **Penalties**: Violators may face civil penalties of up to $51,744 per violation, underscoring the FTC's commitment to enforcement. This regulation emphasizes the importance of genuine engagement and ethical marketing practices. Companies must reassess their strategies to ensure compliance with these new standards. https://lnkd.in/dEjt7ydS

?? Attention subscription businesses! ?? The FTC's long-awaited final "Click to Cancel" Rule is here, and it’s changing the game for subscription-based marketers. My colleagues Paavana Kumar and Alexa Meera Singh have broken down everything you need to know, from strict “one-click” cancellation requirements to the penalties for non-compliance in our latest Advertising + Marketing alert. Stay ahead of the curve. Read our full analysis and make sure your business is ready! ?? https://lnkd.in/eZZfkj6f #SubscriptionBusiness #MarketingLaw #NegativeOption #ClicktoCancel

The FTC has issued its Final Rule which revises its previous “Negative Option Rule” now known as the “Rule Concerning Recurring Subscriptions and Other Negative Option Programs.” The Rule requires that businesses selling subscriptions and other similar products refrain from engaging in certain prohibited conduct, provide mandatory consumer disclosures about transactions, obtain a consumer’s express informed consent prior to engaging in a transaction, and mandates a simple cancellation procedure, among other requirements. In her latest Alert, MHH Partner Terese L. Arenth provides a detailed overview of the Rule, its implications and legal challenges.?Read the full Alert here: https://lnkd.in/em_6vWn7 #ftc #compliance #marketing #advertising

Online reviews are so important in our digital-first world, but it can be frustrating for consumers and businesses alike, when they run up against fake reviews. The good news is there may be a little help on the way in combating fake reviews as a federal rule banning fake online reviews took effect in October 2024. ?? Read More Here: https://hubs.ly/Q02Y-fMY0 #adWhite #OnlineReviews #FTC

Time to re-evaluate how you collect reviews for your business. FTC is enacting new rules regarding online reviews: ?? No fake or AI-generated reviews. ??No bribes for positive reviews. ??Be transparent about any business connections when reviewing. ??No bullying to remove bad reviews. ??No buying or selling fake social media popularity. https://lnkd.in/gzizDJcT

The EPOCH TIMES US | US NEWS “ FTC Rule Banning Fake Reviews Takes Effect With Stiff Penalties While some praised the new rule, some said that it doesn’t do enough to also put responsibilities on third-party review hosting sites.” By Sam Dorman 10/22/2024 “ Federal Trade Commission (FTC) Chair Lina Khan announced on Oct. 21 that the agency’s prohibition on fake online reviews was taking effect, imposing fines as high as $50,000 for violations. ….. The Public Interest Research Group (PIRG) has said that research points to as many as 30 to 40 percent of online reviews being dishonest in some way, while online reviews inform the basis for 90 percent of online shoppers’ decisions. In its final rule, the FTC states that the maximum penalty per violation is $51,744, but courts must consider factors under the FTC Act when determining penalties. Among other things, the final rule prohibits false consumer reviews, buying positive or negative reviews, and suppressing negative reviews.” ….. ….. https://lnkd.in/ggSJ452N

The FTC just banned fake reviews, botting social media engagement, and fake review sites. Here’s what you need to know: ?? What’s changing: The FTC has officially classified fake reviews and manipulated social proof as a form of fraud. Consumers can now report these deceptive practices directly to the FTC—but here’s the kicker: while the ruling is clear, there is no specific civil penalty attached. Enforcement will be case-by-case, at the discretion of the FTC. Here are the 5 activities now classified as fraud: ?? Insider reviews and fake consumer testimonials ?? Company-controlled review websites ?? Manipulation of likes or views on social media ?? Review suppression ?? Buying positive or negative reviews ?? Why it matters: Customer trust has always been your most valuable asset. Now, the stakes are higher—these practices can expose your business to real risks if customers believe you’re benefiting from fake reviews or endorsements. ? Next steps: As we enter the busiest season and plan for 2025, here are a few key areas to assess: ?? Brand Protection: Are there sites that could be mistaken for a company-controlled review site? ?? Trust & Safety: If your platform allows consumer reviews, could they be perceived as fake and reported to the FTC? Is your review moderation process transparent and defensible? A quick survey of your current practices could highlight whether this needs to be a priority for next year. The official FTC ruling—including the link for consumers to report this kind of fraud—can be found here: https://lnkd.in/g7wkDQD5 #TrustMatters #FraudPrevention #CustomerTrust

The FTC plans to expand the Negative Option Rule to cover all goods and services with a negative option feature, like free trials and subscriptions. Key requirements include: 1. Prohibition on Misrepresentations 2. Mandatory Disclosures 3. Express Affirmative Consent 4. Simple Cancellation. The rule passed 3-2, with concerns about its impact on businesses. Effective dates are staggered: disclosures, consent, and cancellations within 180 days, misrepresentation prohibitions within 60 days. Companies must align with these requirements and relevant state regulations. #FTCRules #ConsumerProtection #BusinessRegulations #NegativeOption

I voraciously read reviews. Some may call it being a diligent consumer, but I call it a hobby. A passion if you will. Yet many reviews leave me feeling skeptical...and the FTC finally agrees. Last week I posted about the importance of using relevant reviews and testimonials in your email campaigns. My point still stands, but with the FTC cracking down on the ever-growing online business space, it's important to know new regulations around using reviews and testimonials in your marketing. Basically, these new regulations prohibit ??♀? any sort of deceptive advertising in your reviews and testimonials that includes… ?? Insider reviews, which can include ones from employees or investors without clearly disclosing their ties to the brand ?? Reviews from someone who has never used your product or service, including AI-generated reviews ?? The use of bots to increase social media influence or create reviews ?? Hiding negative reviews ?? Offering incentives like compensation or a free gift or discount code for leaving a review To get more detailed information and avoid any big hiccups down the road – you can read the official release from the FTC here: Keep it honest ya'll! https://lnkd.in/gGmx5C66