The Federal Trade Commission (FTC) has introduced a new rule making it illegal to buy or sell fake reviews and testimonials. This groundbreaking regulation prohibits businesses from purchasing or manipulating reviews and endorsements, including those by influencers and celebrities. Companies that violate the rule will now face severe penalties, signaling a significant shift in U.S. consumer protection laws.
The FTC’s move tackles various deceptive practices, including fake or misleading consumer reviews, endorsements by individuals with no actual experience, and reviews from company insiders that are not clearly disclosed. The rule also prohibits buying or incentivizing reviews with specific sentiments, whether positive or negative, and cracks down on businesses suppressing negative feedback through intimidation or threats. Social media manipulation, such as buying fake followers or views, is also explicitly banned.
FTC Chair Lina M. Khan emphasized that this rule aims to protect consumers and promote fair competition, stating, “Fake reviews not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors.”
SWAPD’s Stance on Fake Reviews SWAPD has long been ahead of the curve on this issue, consistently discouraging the promotion of fake reviews. As a platform built on trust, SWAPD recognized early on that deceptive practices harm both the marketplace and genuine users. “We’ve always known that promoting fake reviews isn’t just unethical—it’s bad for business and the community as a whole,” SWAPD management stated.
However, not all SWAPD members agree with this new level of regulation. Notably, user @woody voiced his concerns, calling the FTC’s move a “communist-like shift” and suggesting that America is heading in the wrong direction with such stringent rules.
As the FTC’s new regulation takes effect, it remains to be seen how businesses and marketers will adapt, but one thing is clear—transparency and authenticity are now non-negotiable in the world of online reviews. SWAPD will continue its commitment to maintaining a fair and honest marketplace, just as it has always done.
