FTC Announces a New Rule Banning Fake Reviews and Penalties over $50K
Federal Trade Commission Chair Lina Khan on Oct. 21 announced that the agency’s ban on phony online reviews was going into effect, with penalties of $51,744 per violations.
On social media platform X, Khan urged followers to report the proscribed practices at reportfraud.ftc.gov. Announcing the rule this August, she said that fake reviews “not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors.”
