Sweeping rules to crack down on widespread fake reviews would make it illegal for businesses to buy and sell phony product testimonials.
Businesses could soon be fined a hefty sum for hosting or promoting fake product reviews online if the Federal Trade Commission has its way.
Generative AI tools such as ChatGPT, which can write human-sounding but bogus product reviews, threaten to compound the problem, according to the FTC. The new technology could enable bad actors to generate significantly higher volumes of fake reviews in order to generate unearned interest in their products.
"Our proposed rule on fake reviews shows that we're using all available means to attack deceptive advertising in the digital age," said Samuel Levine, Director of the FTC's Bureau of Consumer Protection said in a. "The rule would trigger civil penalties for violators and should help level the playing field for honest companies."
The proposed enforcement action comes at a time when a large share of online reviews aren't credible. According to a U.S. PIRGFaux reviews surged during the pandemic when U.S. shoppers made the bulk of their purchases over the internet versus in stores, the group noted. Phony product ratings have serious implications. Nearly 90% of online shoppers rely on reviews to guide their purchase decisions, according to U.S. PIRG.
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