Richard Newman Authors Article for PMA on FTC Final Rule Combatting Fake Consumer Reviews and Testimonials

FTC compliance and defense lawyer Richard B. Newman recently authored an article the Performance Marketing Association “FTC Announces Final Rule Combatting Fake Consumer Reviews and Testimonials.”

In August 2024, the Federal Trade Commission announced a Final Rule combatting fake consumer reviews and testimonials by prohibiting their sale or purchase.  The article discusses how the Final Rule allows the FTC to strengthen enforcement, seek monetary civil penalties against violators and deter AI-generated fake reviews.

The article also discusses what the Final Rule on the use of consumer reviews and testimonials prohibits, including, but not limited to: writing, selling, or buying fake or false consumer reviews; writing, selling, or disseminating fake or false testimonials; buying positive or negative reviews; failing to make disclosures about insider reviews and testimonials; deceptively claiming that company-controlled review websites are independent; illegally suppressing negative reviews; and selling and buying fake social media indicators;

The Supreme Court’s decision in AMG Capital Management LLC v. FTC has hindered the FTC’s ability to seek monetary relief for consumers under the FTC Act.  The Final Rule is intended to enhance deterrence and strengthen FTC enforcement actions.

The Final Rule will become effective 60 days after the date it’s published in the Federal Register.  Note, any “deceptive or unfair” practice involving reviews or testimonials which the Rule does not cover is still subject to the FTC Act.

Contact the Richard to discuss the Final Rule, or if you/your company are the subject of a FTC investigation or litigation matter.

Richard B. Newman is an advertising practices attorney at Hinch Newman LLP.

Informational purposes only. Not legal advice. This article is not intended to and should be construed as a complete summary or discussion of the Final Rule and all of its obligations and restrictions. May be considered attorney advertising.