Extract from Yusef Abutouq and Pamela Deese’s article “From Gen AI to Gen Z (Influencers): New FTC Rule Bans All Fake Reviews”
In an era in which fake reviews run rampant and artificial intelligence (AI) can craft countless deceivingly realistic product reviews with minimal effort, the Federal Trade Commission (FTC) has taken a bold step forward for truth in advertising.
The FTC recently issued a final rule aimed at squashing the spread of fake reviews and testimonials titled the Trade Regulation Rule on the Use of Consumer Reviews and Testimonials (CRT Rule). The CRT Rule is a stride towards safeguarding consumers and fostering fair competition, prohibiting the sale, creation, and dissemination of such deceptive reviews. This finalized rule parallels the FTC’s ongoing efforts in response to the increasing challenges posed by the digital age and the use of AI in generating misleading content, including its request for comments on new impersonation regulation to counter deepfake AI earlier this year.
The CRT Rule, the culmination of a comprehensive process involving proposed rulemaking announcements, public hearings, and a careful consideration of public comments, is poised to be a vital tool in the FTC’s arsenal against deceptive advertising, shielding consumers from fraud, and fostering a marketplace that’s fair, honest, and competitive.
