On September 15, 2021, the Federal Trade Commission (FTC) issued a new policy statement, saying that it is no longer permissible to engage in the practice of posting fake online reviews for goods and services. It also prohibits businesses from inflating their reputation or influence on social media. The rule takes effect on October 15, 2021.
The FTC’s decision is part of a broader effort to clamp down on misleading advertising and deceptive practices online. The policy applies to businesses, public relations firms, and influencers involved in distributing false endorsements.
Those who violate this rule could face investigations, lawsuits, and hefty fines. The ultimate goal of this policy is to provide a fair online market venue for businesses and to protect consumers from misinformation.
The FTC stated, “It’s never been legal to pay someone to post a positive review if they’ve never used the product, or to pretend to be someone else when posting.”
The proliferation of deceptive marketing practices has been a growing concern for the FTC. The commission hopes to address this issue head-on with the imposition of this new policy.
