The Federal Trade Commission (FTC) has introduced a set of stringent rules aimed at curbing the spread of fake reviews and fake followers, set to take effect in October. In my latest video we dive into what the FTC claims they will now be enforcing.
These rules are intended to close the loopholes left by a recent Supreme Court decision, which limited the FTC’s ability to seek civil damages without specific regulations in place. With these new rules, the FTC aims to expand the scope of what is deemed illegal, allowing them to take civil action against violators.
One of the central elements of the new regulations is the prohibition of paid reviews. Businesses are now explicitly banned from creating or selling fake reviews or testimonials. This rule also covers the practice of paying for negative reviews, a tactic some companies have used against competitors. The FTC’s stance on this matter is clear: reviews should be authentic and based on real experiences, not monetary exchanges.
In light of these regulations, it’s worth examining the practices of some notable companies. For instance, Canon Corporation’s approach to influencer marketing raises questions about the authenticity of reviews. The company recently reached out to me, offering their V10 vlogging camera for review. However, the terms of their agreement were troubling. Canon required pre-approval of all content before publication, with the right to demand revisions. This pre-review requirement undermines the integrity of the review process, making it less about honest opinions and more about corporate approval.
Another example involves Google’s Team Pixel program, which has come under scrutiny for its recent shift in policies. Previously, the program involved sending phones to tech enthusiasts and reviewers without any obligations. However, with the release of the Pixel 9, creators were asked to agree not to feature competitor devices in their content or speak favorably about competing phones in comparison to the Pixel.
Google says that the goal of Teampixel was “is to get Pixel devices into the hands of content creators, not press and tech reviewers.” However this is just flat-out false. In my communications with the marketing company operating Teampixel they knew I was a product reviewer from day 1. Many of their communications referred to creators making reviews too.
The FTC’s new rules also target companies that set up biased review websites, where competing products receive unfavorable reviews, while the company’s own products are praised. This type of astroturfing is now explicitly banned. Moreover, businesses are no longer allowed to suppress negative reviews through intimidation or legal threats, a practice that has been reported in various industries. Additionally, if a company has a review section of their e-commerce site they cannot cherry pick positive reviews while excluding the negative ones.
I personally encountered review suppression when I tried to post a critical review on Channel Master’s website. As I noted in my review video, the player did not work as advertised with encrypted over the air content without an Internet connection. My review was never published but there are plenty of glowing ones visible on their product page. The new FTC regulations make it illegal for businesses to misrepresent the reviews on their websites, ensuring that all genuine feedback, whether positive or negative, is accounted for.
Lastly, the FTC’s crackdown extends to the purchase or sale of fake social media influence, including followers and views generated by bots or hijacked accounts. Paying for legitimate ads on social media platforms remains legal, but these platforms are now under greater pressure to ensure that the engagement they sell is genuine.
The big question now is what if any enforcement might we see from the FTC moving forward. I’ve had off the record conversations with FTC officials in the past and it was clear they lacked the resources to go after the many offenders out there. It is likely they will try to make an example out of a few big violators in the hopes that it encourages others to fall into compliance. Stay tuned!