FTC Finalizes Rule Banning Fake Reviews and Testimonials & Touts New Rule at Open Commission Meeting
- Frank Gorman, Reade Jacob
- 10.9.2024
The Federal Trade Commission voted on August 14 to approve its Trade Regulation Rule on the Use of Consumer Reviews and Testimonials. The Rule, which will be effective on October 21, 2024, will ban marketers from using fake reviews, consumer testimonials, and celebrity testimonials and will prohibit companies from paying for either positive or negative reviews. It will authorize the FTC to seek consumer restitution and, for knowing violators, civil penalties of up to $51,744 per violation. During the FTC’s September 19 Open Commission Meeting, FTC Chair Kahn touted the new rule as one that “will make a marketplace that is better for consumers and honest businesses alike.”
