“Attorneys, it’s time to put your marketing teams on high alert. The FTC is cracking down hard on fake reviews and AI-generated testimonials. Here’s what you need to know:
First, fake or misleading consumer reviews, testimonials, or celebrity endorsements are prohibited. The FTC also bans the purchase of positive or negative reviews—and buying negative reviews is especially unethical. Insider reviews and incentivized testimonials are off-limits unless properly disclosed.
Next, businesses are prohibited from misrepresenting that a website or entity they control offers independent reviews or opinions. In other words, you can’t create third-party review sites to promote yourself.
The FTC also targets review suppression. If you’re drowning out negative feedback by flooding the internet with fake positive reviews, you’re going to face consequences.
Lastly, the misuse of fake social media metrics—like followers or views generated by bots or hijacked accounts—is strictly prohibited.
The FTC is cracking down on unethical marketing practices, and violators could face civil penalties. If you work with marketing agencies or consultants, bring this to their attention. It could uncover some shortcuts that may be putting your business at risk. Hopefully not—but it’s better to be safe than sorry.“
-Hugo E. Gomez, Founder (Abogados Now)