A New Consumer Protection Rule Most Will Like

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(5MinNewsBreak.com) – It seems America has been able to find common ground after the Federal Trade Commission recently issued a new rule against fake online reviews.

Under the leadership of Biden-appointed FTC Chair Lina Khan, this new rule bans false consumer reviews, buying or selling reviews and suppressing negative feedback.

With fines of up to $51,744 per violation, the rule also bans the purchase of followers and views from bots or hacked accounts.

The FTC states this rule is necessary to improve consumer trust and promote fair competition.

Yelp and Amazon have welcomed the regulations, believing it will improve the landscape of online reviews.

Both companies, alongside Google, have taken measures to fight fake reviews, including legal actions and automated systems.

Despite the efforts, the rule does not hold third-party review sites accountable, which quickly prompted criticism.

Fake Review Watch creator Kathryn Dean expressed that “while the rule addresses the culprits who both buy and sell fake reviews, it gives a pass to those most responsible for the whole system and who do far too little to clean up the fraud.”

Compliance costs are predicted to soar, with estimates reaching $871.98 million by 2024 in the U.S.

As the FTC strives to promote fair, honest and competitive markets, it also encourages platforms to combat fraudulent reviews and educate consumers and businesses.

The rule is seen as a seismic shift in how the FTC regulates online reviews under its Updated Endorsement Guidelines (2023).

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