FTC Might Need More Illumination On Proposed Rule For Online Consumer Product Reviews
BBB National Programs found FTC’s proposed Trade Regulation Rule on the Use of Consumer Reviews and Testimonials largely effective with some certainty on whether product reviews or customer testimonials are violations of its false advertising standards. But it =expects some clarifications may come in final rule.
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AI has a place in the FTC's proposed rule to ban fake consumer reviews and testimonials in online advertising in the US for a reason, one that BBB National Programs also acknowledges.
The FTC’s final revised Guides Concerning the Use of Endorsements and Testimonials in Advertising address online practices that have grown increasingly prevalent and problematic since the commission last updated the guidelines in 2009. The FTC tackles deceptive product reviews and advises advertisers and endorsers to make social media disclosures “unavoidable,” among other changes.
The proposed rule shows the FTC “using all available means to attack deceptive advertising in the digital age,” agency leadership says. Stakeholder comments point to the prevalence of fake reviews and testimonials online, and “a rule clearly spelling out prohibited practices and allowing for the judicial imposition of civil penalties could strengthen deterrence and FTC enforcement actions," the commission says.