United States of America: Announced FTC Rule Banning Fake Reviews and Testimonials

On 30 June 2023, the US Federal Trade Commission (FTC) announced it was proposing a new regulation entitled “Rule on the Use of Consumer Reviews and Testimonials,” which would prohibit certain unfair or deceptive acts or practices involving consumer reviews or testimonials. In particular, the new rule aims to stop marketers from using illicit review and endorsement practices such as using fake reviews, suppressing honest negative reviews, and paying for positive reviews. In addition, the FTC announced it would open a consultation on the new rule following its publication in the Federal Register. In particular, the FTC will seek comments on proposed measures relating to selling or obtaining fake consumer reviews and testimonials, review hijacking, buying positive or negative reviews, insider reviews and consumer testimonials, company-controlled review websites, illegal review suppression, and selling fake social media indicators.