Description

Adopted FTC order enforcing content-related measures

On 13 October 2021, the Federal Trade Commission (FTC) sent out a Notice of Penalty Offense to over 700 companies in the US. Through such notices, the FTC is informing companies how deceiving consumers through the use of endorsements will be punished. Specifically, fake reviews and other misleading endorsements will lead to civil fines of up to $43,792 per violation. The notice was sent out after the FTC detected a variety of practices, namely false claims of endorsement by a third party, using an endorsement to make deceptive performance claims and misrepresenting that the experience of endorsers represents consumers’ typical or ordinary experience.

Original source

Scope

Policy Area
Competition
Policy Instrument
Unilateral conduct regulation
Regulated Economic Activity
platform intermediary: e-commerce
Implementation Level
national
Government Branch
executive
Government Body
competition authority

Complete timeline of this policy change

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2021-10-13
adopted

On 13 October 2021, the Federal Trade Commission (FTC) sent out a Notice of Penalty Offense to over…

Key regulatory dimensions

Regulated subjects

The businesses, government agencies or individuals affected by this policy or regulatory change.
producer / supplier
1
Type Private organisation
Economic activity platform intermediary: e-commerce
Category All

Policy change by business practice

The detailed activities within the scope of this policy or regulatory change.
content: reviews: creation (any form)
Regulatory tool
User notification requirement
Sanctions
Regulated subjects
1

Policy change by business practice

The detailed activities within the scope of this policy or regulatory change.

content: reviews: creation (any form)