On August 14, 2024, the Federal Trade Commission (“FTC”) announced a new final rule aimed at regulating fake consumer reviews, testimonials, insider reviews, company-controlled websites, and fake indicators of social media influence (e.g., “likes”) (the “Final Rule”). The Final Rule was promulgated pursuant to Section 18 of the FTC Act, which authorizes the FTC to issue rules that define acts or practices that are unfair or deceptive within the meaning of Section 5(a)(1) of the FTC Act, and it enables the FTC to seek civil monetary penalties for violations.
While it covers ground similar to the FTC’s recently updated endorsement guides (the “Guides”), which we wrote about last year, the Guides regulate the conduct of individuals who are paid or incentivized to endorse products, whereas the Final Rule applies directly to companies advertising through consumer reviews, testimonials, and social media.
The Final Rule has six primary subsections: (1) Fake or False Consumer Reviews, Consumer Testimonials, or Celebrity Testimonials (§ 465.2); (2) Buying Positive or Negative Consumer Reviews (§465.4); (3) Insider Consumer Reviews and Consumer Testimonials (§465.5); (4) Company-Controlled Review Websites or Entities (§465.6); (5) Review Suppression (§465.7); and (6) Misuse of Fake Indicators of Social Media Influence (§465.8).
Blog Editors
Recent Updates
- The Sleeping Giant: New York’s Commercial Division Expert Disclosure Rules
- Commission Commitments: Massachusetts Appeals Court Upholds Obligation to Continue Paying Commission for the Life of the Underlying Customer Relationship
- A Win for Out-of-Network Providers
- Mastering Legal Writing: Elevate Your Written Advocacy – Speaking of Litigation Video Podcast
- DOJ’s First Civil Cyber-Fraud Initiative Litigation Serves as Warning to Government Contractors Who Fail to Abide by Contractual and Statutory Cybersecurity Requirements