👮🏻 $51,744 fine for paid review
Were you aware that you could face a fine of up to $51,744 for a paid review? - The Rule: The charge stems from the FTC's "Trade Regulation Rule on the Use of Consumer Reviews and Testimonials" (codified as 16 CFR Part 465). This rule, which was finalized in 2024, explicitly bans practices like writing, buying, selling, or disseminating fake reviews. - The Authority for Fines: This new rule gives the FTC the authority to seek civil penalties for violations. This authority is granted under Section 5 of the FTC Act. - The Fine Amount: The $51,744 is the maximum civil penalty the FTC can seek per violation. This specific amount is not permanent; it is adjusted annually for inflation, which is why it's such a precise number. The FTC may also take the position that each individual fake review constitutes a separate violation. The new FTC rule (16 CFR Part 465) prohibits fake reviews, which in turn allows the FTC to seek inflation-adjusted civil penalties under its existing authority from the FTC Act. The rule specifically prohibits several deceptive practices, including: - Buying or Selling Fake Reviews: This includes reviews from someone who does not exist (like an AI-generated review) or who has not actually used the product. - "Review Hijacking": Using or repurposing a review written for one product on a different product. - Insider Reviews: Company officers or managers writing reviews for their own products or services without clearly and conspicuously disclosing their relationship. - Review Suppression: Illegally suppressing negative reviews, such as by threatening the reviewer or misrepresenting that a site shows all reviews when it does not.