The FTC has issued a 'final rule,' which sounds ominous and bans fake reviews, false testimonials, and other forms of consumer deception.

You'll likely rely heavily on reviews when it comes to making your next purchase. It won't surprise you to learn that some reviews are more trustworthy than others. These include reviews from obvious bots, paid reviews, and fake testimonials.

The FTC has now announced what it calls a "final rule" to combat this (via PC World). The FTC has been working on this rule since October 2022. It contains some pretty broad prohibitions that target some of the biggest issues consumers face when they search through site reviews in order to find trustworthy content.

The final rule prohibits fake reviews, false testimonials from consumers, and celebrity testimonials. It also prohibits businesses from "offering compensation or incentives in exchange for consumer reviews that express a certain sentiment, whether positive or negative." The final rule also prohibits reviews and testimonials from company insiders who fail to disclose their connection to the business.

Businesses are also prohibited from misrepresenting themselves as independent reviewers when they express opinions about the products or services that they own. The "fake social indicators" are also targeted. This is a way to prohibit the buying or selling of followers on social media or views generated from a bot.

The rule also prohibits businesses from using "unfounded legal threats, physical intimidation, or certain false accusations in public to prevent or remove negative consumer reviews."

The FTC claims that the new prohibitions will "enhance the deterrence" and "strengthen FTC enforcement actions". It cites an earlier Supreme Court decision which it says has hindered their ability to seek monetary compensation for consumers until now.

"Fake reviews waste people's money and time, and also pollute the market and divert business from honest competitors," said FTC chair Lina M.Khan.

The final rule will help protect Americans against being cheated by businesses who illegally game the system, alert them to their actions, and promote fair, honest and competitive markets.

This tightening of FTC's stance should hopefully deter US businesses from acting unscrupulously in promoting their products.

As someone who has written many hardware reviews, I can't but cheer that the principles of fairness and proper disclosure, as well as consumer rights, are receiving some strengthened protections. At least as far as FTC is concern.