FTC Weighing Trade Rule On Fake Endorsements, Including By ‘Patient Ambassadors’
Executive Summary
If the commission does develop a rule, it would provide a vehicle for stronger enforcement in the area.
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FTC Gives Stage To Critics And Champions Of Online Consumer Product Reviews, Testimonials
Speakers scheduled for hearing are Fake Review Watch, which says it’s “dedicated to exposing the massive corruption of online consumer review platforms”; University of California-Davis researchers who found widespread fraud; and Interactive Advertising Bureau, which says its members account for 86% of online advertising expenditures in the US.
FTC Will Move Forward ‘Expeditiously’ With Proposed Rule Targeting Fake Reviews Online
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.
US FTC Targets Fake Online Reviews, Expanded Liability, With Proposed Endorsement Guides Update
Proposed changes to the FTC’s “Guides Concerning the Use of Endorsements and Testimonials in Advertising” depict an agency looking to crack down on fake reviews and suppression of negative ones, tighten its definition of “clear and conspicuous” disclosures, and clarify that advertisers, endorsers, intermediaries and platforms all can be held liable for their endorsement roles.