FTC’s New Rule Aims to Punish Companies Using Fake Reviews and Social Media Metrics

  • The Federal Trade Commission (FTC) plans to fine companies up to $50,000 for each fake review and each instance it is viewed.
  • The rule, nearing finalization, also targets review manipulation and usage of fake social media followers, views and intimidation tactics to suppress negative reviews.
  • Although there won’t be additional resources for enforcement, codified rules could strengthen the FTC’s position in court, effectively deterring companies from such deceptive practices.
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