When you buy a product or hire a service, do you check reviews from your fellow consumers to see what they have to say about it? Have you ever thought that maybe these consumers don’t really exist and the reviews are made up by the seller?

This deviousness is about to be ignored by a new rule issued by the US Federal Trade Commission. As previously discussed, the FTC is an agency created by Congress to regulate commerce to protect consumers and promote a healthier, fairer marketplace for sellers.

The new rule, which came into effect in October 2024, prohibits fake online reviews.

First, the rule prohibits companies from using reviews and testimonials from people that don’t exist, including reviews generated by artificial intelligence.

Second, reviews from people who have never experienced the product, company, or service are also prohibited.

Third, companies are not allowed to offer compensation or other incentives for positive or negative reviews.

Fourth, internal reviews, such as those written by people working for the company, are also prohibited.

Fifth, businesses can no longer use legal threats, physical threats, intimidation, or certain baseless false public accusations to prevent or remove a negative consumer review.

Finally, the intentional purchase or sale of bots that generate fake followers or views for a social media account is prohibited.

How will the FTC enforce this (or any other) rule against companies?

The FTC monitors compliance with its rules, much like Santa Claus keeps a list of the world’s naughty and nice children. If a company is suspected of violating an FTC rule (suspicions are usually initiated by complaints from consumers or other businesses), the company is placed on the naughty list and a notice of criminal violation is issued. sent to the company to inform it of the alleged violation. conduct that is prohibited.

Subsequently, the FTC may file an action in federal court seeking civil penalties. It must show (1) that the company knew that the conduct was unfair or deceptive in violation of the FTC Act, and (2) the FTC has previously issued a written determination that such conduct is unfair or deceptive.

Businesses that continue to violate the rule after receiving notice face civil penalties of up to $51,744 per violation, adjusted annually for inflation. Additionally, injunctions (court orders) can be sought to prevent further anti-competitive behavior, as well as to ask a court to award restitution to consumers.

In support of adopting this new rule, the FTC pointed out that fake reviews not only deceive people and waste their time and money, but pollute the market and divert business from honest competitors.

Consumer groups report that about 76% of consumers say they always check reviews before making an online purchase, and about 93% of them said online reviews have had an impact on their purchasing decisions. The number of fake reviews is said to be alarming: 30 to 40 percent.

Online reviews can make or break a business. So it’s no surprise that some providers have resorted to deceptive tactics to maintain high ratings.

So, if you discover that you have been deceived by a fake review, report it to your FTC Santa. And if you’re the trickster, don’t be surprised if your Christmas stocking is filled with a subpoena to appear in federal court.

Brett Kepley is an attorney with Land of Lincoln Legal Aid Inc. Send questions to The Law Q&A, 302 N. First St., Champaign, IL 61820.