FTC Rule Banning Fake Reviews Takes Effect With Stiff Penalties

While some praised the new rule, some said that it doesn’t do enough to also put responsibilities on third-party review hosting sites.

Lina Khan, then-nominee for FTC commissioner, speaks during a hearing on Capitol Hill, on April 21, 2021. Graeme Jennings/AP Photo

Federal Trade Commission (FTC) Chair Lina Khan announced on Oct. 21 that the agency’s prohibition on fake online reviews was taking effect, imposing fines as high as $50,000 for violations.

On social media platform X, Khan encouraged followers to report the proscribed practices at ReportFraud.FTC.gov. In announcing the rule this August, she said that fake reviews “not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors.”