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Federal Trade Commission Fake Feedback Prohibition

As of October 13, it has become a recognised offence to use fake and AI-generated customer reviews to boost your brand’s profile in the USA.

The rule – which was first floated by the FTC all the way back in November 2022 – also extends to the use of artificial engagement on social media. This means it will soon be illegal to purchase followers, views, likes and other misleading social signals across all major platforms.

A Move to Minimise Misinformation

According to the FTC, the new legislation is designed to both protect consumers and nurture fair competition among businesses.

“Fake reviews not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors,” commented FTC Chair Lina M. Khan in a statement.

“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.”

Starting October 13, anyone who fails to comply with the new rules may be liable for civil penalties, including heavy fines. The blanket ban replaces previous attempts by the FTC to clamp down on fake reviews and other types of misinformation, which in the past were considered on a case-by-case basis.

Prohibited Content Explained

The scope of the ruling is huge – so much so that many commentators have suggested it may be largely unenforceable.

While the legislation is designed to primarily target AI-generated reviews, it also extends to testimonials and feedback written by someone who doesn’t exist – i.e. the use of fake accounts and profiles.

Even more difficult to identify and enforce, the FTC ruling formally prohibits:

  • Feedback and reviews from those who did not actually use or experience the product or service they are reviewing.
  • Any skewed feedback or reviews that are not accurate in terms of the customer’s actual experience with the product or service.
  • Feedback and reviews submitted by those in certain positions within the business itself, such as managers.
  • Purchased feedback and reviews of any kind.
  • Fake social media indicators, covering all types of social proof across every major platform in operation in the USA.

Given the prevalence of bots across the biggest social networks, the feasibility of the FTC’s capacity to effectively control artificial engagement is questionable. On Twitter (X) alone, it’s estimated that up to 75% of traffic is generated by bots.

Hence, where artificial inflation of engagement metrics (and fake feedback) is detected, it may be difficult or even impossible to know exactly where to point the finger of blame. Things become even cloudier when considering the ruling’s potential global implications, but it's hardly likely to worry brands and business owners outside the US.

Still, if it at least makes a minor dent in the misinformation epidemic that’s growing by the day, it’s probably better than nothing.