The Federal Trade Commission (FTC) has issued a new rule banning fake online reviews and exaggerated social media influence. This comes after extensive evidence that some companies, influencers, and other entities have been dishonestly boosting their online presence through these means, which can deceive consumers and limit marketplace competition.
The new rule prohibits this conduct, including employing deceptive marketing strategies through various social media platforms. This is part of the FTC’s mission to uphold truth in advertising and to protect consumers from fraudulent business practices.
The rule will take effect in October. Any entity violating this rule may face civil penalties. It’s a significant step in ensuring that companies and influencers maintain honesty, transparency, and accuracy in their online interactions.
