On June 30, 2023, the Federal Trade Commission (“FTC”) announced that it would be publishing a notice of proposed rulemaking on the use of consumer reviews and testimonials.

The proposed rule follows FTC’s November 2022 Advance Notice of Proposed Rulemaking. The FTC voted 3-0 to approve the notice of proposed rulemaking, which will be published in the Federal Register and open to public comment.

Specific practices that would be prohibited under the proposed rule and subject to FTC fines or enforcement action include:

• Selling or Obtaining Fake Consumer Reviews, Consumer Testimonials, or Celebrity Testimonials: Businesses would be prohibited from writing or selling consumer reviews or testimonials by someone who does not exist, who did not have experience with the product or service, or who misrepresented their experiences. They would also be prohibited from procuring such reviews or disseminating such testimonials if the businesses knew or should have known that they were fake or false.
• Review Repurposing: Businesses would be prohibited from using or repurposing a consumer review written for one product so that it appears to have been written for a substantially different product.
• Buying Positive or Negative Reviews: Businesses would be prohibited from providing compensation or other incentives conditioned on the writing of consumer reviews expressing a particular sentiment, either positive or negative.
• Insider Reviews and Consumer Testimonials: Company employees...

Read Full Story: https://news.google.com/rss/articles/CBMiT2h0dHBzOi8vd3d3Lmpkc3VwcmEuY29tL2xl...