Fri. Nov 8th, 2024
A tan building in the foreground with a sign that says "Federal Trade Commission Building."
A sign stands outside the Federal Trade Commission building in Washington D.C. © 2015 AP News/Alex Brandon

A federal rule banning fake online reviews officially went into effect on Monday.

The Federal Trade Commission (FTC) issued the rule back in August with the intent to ban the sale or purchase of online reviews. As a result, the agency can seek civil penalties against those who knowingly violate it.

Aside from the inability to exchange reviews, other rules include: insider reviews, review suppression and the use of social media to perpetrate false reviews.

These regulations fall in line with the goals of the FTC’s Bureau of Consumer Protection, which are primarily to prevent deceptive business practices while defending companies. In a previous statement, FTC Chair Lina Khan further explained the law’s purpose.

“It will protect Americans from getting cheated, put businesses that unlawfully game the system on notice and promote markets that are fair, honest and competitive,” said Khan.

When approving the rule, the Commission passed it in a 5-0 vote. Per the FTC, it took about 60 days after the Federal Register publishing date to become effective.