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U.S. Announces New Rules Banning Fake Reviews and Testimonials, Allowing Authorities to Seek Civil Penalties Against Violators, Deter AI-Generated Fake Reviews (www.ftc.gov)

submitted 2 months ago by [email protected] to c/[email protected]

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The U.S. Federal Trade Commission today announced a final rule that will combat fake reviews and testimonials by prohibiting their sale or purchase and allow the agency to seek civil penalties against knowing violators.

"Fake reviews not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors,” said FTC Chair Lina M. Khan. “By strengthening the FTC’s toolkit to fight deceptive advertising, the final rule will protect Americans from getting cheated, put businesses that unlawfully game the system on notice, and promote markets that are fair, honest, and competitive.”

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[–] [email protected] 7 points 2 months ago (1 children)

Will this stand up to the death of Chevron deference? Or are we 3 weeks away from a judge throwing the rule out unless congress passes a specific law.

[–] [email protected] 5 points 2 months ago

Will this stand up to the death of Chevron deference? Or are we 3 weeks away from a judge throwing the rule out unless congress passes a specific law.

I think this is squarely in the charter of the FTC but who knows with the courts any longer. We just saw them strike down a ruling by the EPA to enact health measures under the requirements of the Civil Rights Act.