It also bans them from manipulating, suppressing genuine negative reviews.
The original proposal was modified multiple times and finalized into six key points.
The Federal Register catalog hadn’t been updated with the new FTC rules at the time of this writing.
Generative AI has led to asudden spike in scams, especially fake reviews.
That includes providing any incentive or reward for the reviewer to gain a favorable review.
Businesses arent allowed to manipulate ratings or hide genuine negative customer reviews.
The FTC also requires companies to clearly identify any testimonials that come from company insiders and affiliates.
Company managers are not allowed to give testimonials at all.
Some review websites pose as independent when theyre secretly owned by the company whose products theyre reviewing.
Businesses will have to disclose connections like that now.
Source:FTC,TechCrunch
