White & Case LLP’s Post

"𝗙𝗧𝗖'𝘀 𝗡𝗲𝘄 𝗥𝘂𝗹𝗲 𝗧𝗮𝗿𝗴𝗲𝘁𝘀 𝗙𝗮𝗸𝗲 𝗥𝗲𝘃𝗶𝗲𝘄𝘀 𝗮𝗻𝗱 𝗠𝗶𝘀𝗹𝗲𝗮𝗱𝗶𝗻𝗴 𝗧𝗲𝘀𝘁𝗶𝗺𝗼𝗻𝗶𝗮𝗹𝘀-𝗣𝗮𝗿𝘁-𝟬𝟭" The FTC's final rule aims to regulate the use of reviews and testimonials, ensuring transparency and preventing deceptive practices in advertising. This rule emphasizes that businesses must disclose any incentives or relationships that might influence reviews or endorsements. It also introduces penalties for fake or misleading testimonials, aiming to protect consumer trust and promote honest marketing practices. For a more in-depth look, read the full article here: https://lnkd.in/ezcm8_aC #ConsumerProtection #FTC #FakeReviews #Transparency #MarketingCompliance

The #FTC has finalized its Rule on #ConsumerReviews - while many of these practices are already considered deceptive, the regulators will look to the new Rule to eke out more civil penalties from violators. TL;DR, the Rule prohibits: 😦 #Fake or #False Consumer Reviews, #Consumer #Testimonials, and #Celebrity #Testimonials: For example, AI-generated fake reviews, or reviews from people who did not have actual experience with the business or its products or services. 🤑 #Buying Positive or Negative #Reviews: Businesses cannot provide compensation or other incentives conditioned on the writing of consumer reviews expressing a particular sentiment, either positive or negative. 🙄 #Insider #Reviews and #Consumer #Testimonials: No more reviews and testimonials written by company insiders that fail to clearly and conspicuously disclose the giver’s material connection to the business. 👮♂️ #CompanyControlled #Review Websites: The Rule prohibits a business from misrepresenting that a website or entity it controls provides independent reviews or opinions about a category of products or services that includes its own products or services. 🤐 #Review #Suppression: Businesses cannot use unfounded or groundless legal threats, physical threats, intimidation, or certain false public accusations to prevent or remove a negative consumer review. 📲 #Misuse of Fake #Social #Media Indicators: The final rule prohibits anyone from selling or buying fake indicators of social media influence, such as followers or views generated by a bot or hijacked account. More analysis to come. In the meantime, you can read the press release here and reach out to me with any questions: https://lnkd.in/etzWYNj2

Last summer, the FTC issued long-overdue updates to its Guides on Endorsements and Testimonials. This summer, they've gone one step further and have finalized a new rule banning fake consumer reviews and testimonials. My partner Paavana Kumar has identified some of the major highlights in her post below. Those operating in e-commerce and consumer products should take note. More updates on this important topic coming soon! #FTC #marketinglaw #consumerreviews #ecommerce #fakereviews

For subscription businesses, the message is clear: compliance with these evolving regulations is not just a legal requirement but a necessary step to maintain consumer trust and competitive standing in the marketplace. Read more 👉 https://lttr.ai/AV3Pz #subscriptionmodel

The Federal Trade Commission (FTC) of the United States recently implemented a new rule called the "Prohibition of Fake Reviews and Testimonials." This rule aims to prevent the spread of fake reviews and testimonials concerning goods and services, enhance market transparency, and protect consumer rights. 𝟭. 𝗙𝗮𝗸𝗲 𝗥𝗲𝘃𝗶𝗲𝘄𝘀 𝗣𝗿𝗼𝗵𝗶𝗯𝗶𝘁𝗲𝗱: Publishing fake or fraudulent reviews about products and services is prohibited. This includes reviews written by individuals or entities that have not experienced the product or service. 𝟮.𝗙𝗮𝗸𝗲 𝗧𝗲𝘀𝘁𝗶𝗺𝗼𝗻𝗶𝗮𝗹𝘀: Using counterfeit endorsements for advertising is forbidden. Companies should not use testimonials from non-genuine or ineffective individuals or entities. 𝟯.𝗗𝗶𝘀𝗰𝗹𝗼𝘀𝘂𝗿𝗲 𝗼𝗳 𝗔𝗰𝗰𝘂𝗿𝗮𝘁𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: Companies must disclose truthful and accurate information about the identity of review authors. Failing to disclose compensation or incentives provided to reviewers is illegal. 𝟰.𝗥𝗲𝗱𝘂𝗰𝗲𝗱 𝗡𝗲𝗴𝗮𝘁𝗶𝘃𝗲 𝗥𝗲𝘃𝗶𝗲𝘄𝘀: Any practice to remove or diminish negative or critical reviews to enhance the company’s image is banned. This includes pressuring customers to delete critical reviews. 𝟱.𝗚𝗲𝗻𝘂𝗶𝗻𝗲 𝗥𝗲𝘃𝗶𝗲𝘄𝘀: Companies should not share positive experiences fabricated by employees or affiliates. Reviews must come from genuine customers. 𝟲.𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿 𝗔𝗹𝗲𝗿𝘁𝘀: Companies must clearly indicate if reviews may be paid or incentivized. Such information must be presented clearly and understandably to consumers. 𝟳.𝗟𝗲𝗴𝗮𝗹 𝗖𝗼𝗻𝘀𝗲𝗾𝘂𝗲𝗻𝗰𝗲𝘀: Companies and individuals associated with publishing fake reviews and testimonials may face heavy fines and legal action. The FTC has the authority to impose monetary penalties and further legal directives to prevent reoccurrence. 𝟴.𝗟𝗲𝗴𝗮𝗹 𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁𝘀: The new regulations encompass all platforms where reviews and testimonials are published. This includes websites, social media, apps, and any other place where user reviews are displayed. This new rule is a significant step in protecting consumer rights, building public trust, and creating a fairer market. Companies must now carefully manage and verify the authenticity of reviews and testimonials to avoid any deceptive practices. Compliance with these regulations will help increase consumer confidence and ensure fair practices in the marketplace. #FTCRules #NoFakeReviews #ConsumerProtection #Transparency #FairMarket #GenuineReviews #LegalCompliance #ConsumerTrust

I just want to make sure you heard the FTC news. ✴ Federal Trade Commission Announces Final Rule Banning Fake Reviews and Testimonials - The rule will allow the agency to strengthen enforcement, seek civil penalties against violators, and deter AI-generated fake reviews ---------------------------------------------------------------------------------- 16 CFR Part 465: Trade Regulation Rule on the Use of Consumer Reviews and Testimonials (Final Rule) The rule will become effective 60 days after the date it’s published in the Federal Register. 💣 Prohibited: 1️⃣ Fake or False Consumer Reviews, Consumer Testimonials, and Celebrity Testimonials: The final rule addresses reviews and testimonials that misrepresent that they are by someone who does not exist, such as AI-generated fake reviews, 2️⃣ Buying Positive or Negative Reviews: The final rule prohibits businesses from providing compensation or other incentives conditioned on the writing of consumer reviews expressing a particular sentiment, either positive or negative. 3️⃣ Insider Reviews and Consumer Testimonials: The final rule prohibits certain reviews and testimonials written by company insiders that fail to clearly and conspicuously disclose the giver’s material connection to the business. It prohibits such reviews and testimonials given by officers or managers. I 4️⃣ Company-Controlled Review Websites: The final rule prohibits a business from misrepresenting that a website or entity it controls provides independent reviews or opinions about a category of products or services that includes its own products or services. 5️⃣ Review Suppression: The final rule prohibits a business from using unfounded or groundless legal threats, physical threats, intimidation, or certain false public accusations to prevent or remove a negative consumer review. 6️⃣ Misuse of Fake Social Media Indicators: The final rule prohibits anyone from selling or buying fake indicators of social media influence, such as followers or views generated by a bot or hijacked account. Full detail:

🚨 Why the New FTC Rule on Fake Reviews Matters to You 🚨 Attention businesses: Are you STILL relying on fake reviews to boost your credibility? The Federal Trade Commission’s new rule has teeth, and getting caught could cost you. Here’s what you need to know if you're a marketer and it's pretty important: 🔍 This Ruling: Banes Fake Reviews: No more creating, buying, or spreading fake reviews. AI-generated or non-existent reviewers are out. Bans Paid Opinions: You can’t offer incentives for specific review sentiments. Authenticity is non-negotiable. Requires Disclosure: Insider reviews must clearly state their connection to your business. 🚨 For Businesses: If you're caught using fake reviews you risk facing hefty civil penalties. The FTC now has the power to enforce significant fines against deceptive practices. Ensure your marketing practices are above board or you're going to pay for it. With this new rule, the FTC has totally strengthened its toolkit to enforce fair practices and protect consumers. Save this article and tag your marketer friends because it's pretty important. #marketingnews #banfakereviews #newsupdate https://lnkd.in/g8XiDNuF

Something some folks might have missed in the FTC "Fake Review" ruling: "Company-Controlled Review Websites: The final rule prohibits a business from misrepresenting that a website or entity it controls provides independent reviews or opinions about a category of products or services that includes its own products or services." Many, MANY companies use intermediary review "sites" to filter out bad reviews before they end up on actual review sites. This seems to fall into the category of "entity it controls" and could cause *a lot* of problems for these companies. You may want to review your review system agreement. https://lnkd.in/gf9nTHyU

The FTC has taken a firm stand against fake reviews with a new rule that prohibits their sale or purchase, setting the stage for civil penalties for violations. This crucial step is designed to protect consumers and uphold fair market practices. The forthcoming implementation of this rule is poised to have a profound effect on how reviews shape consumer decisions and business strategies. #FTC #ConsumerProtection #FakeReviews #BusinessEthics

FTC Announces Final “Click-to-Cancel” Rule Sellers will have to make it as easy for consumers to cancel their enrollment as it was to sign up. Most of the final rule’s provisions will go into effect 180 days after it is published in the Federal Register. #FTC, #marketing, #regulatorycompliance Read more in my post 👇: https://lnkd.in/eYZCStqA