The FTC voted unanimously to ban fake reviews, such as those generated with AI technology, and other misleading advertising practices. This includes banning marketers from paying for positive or negative reviews. The ban also prohibits exaggerating influence by paying for bots to inflate follower counts on social media. Violations could result in fines per infraction, meaning penalties for thousands of fake reviews on a site could add up quickly. Amazon has already sued over 10,000 groups brokering fake Facebook reviews for sellers on its site. Review sites like Yelp support the ban, hoping it creates a fairer playing field for honest businesses.
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00:00It's Benzinga, and here's what's on the block.
00:02The FTC voted unanimously to ban fake reviews such as those generated with AI technology
00:08and other misleading advertising practices.
00:11This includes banning marketers from paying for positive or negative reviews.
00:15The ban also prohibits exaggerating influence by paying for bots to inflate follower counts
00:19on social media.
00:21Violations could result in fines per infraction, meaning penalties for hundreds of thousands
00:25of fake reviews on a site could add up quickly.
00:28Amazon has already sued over 10,000 groups brokering fake Facebook reviews for sellers
00:33on its site.
00:34Review sites like Yelp support the ban, hoping it creates a fairer playing field for honest
00:38businesses.
00:39For all things money, visit Benzinga.com.