FTC's August 2024 final rule

government

Federal Trade Commission·ftc.gov/news-events/news/press-releases/2024/08/federal-t...

Credibility Rating

4/5

High(4)

High quality. Established institution or organization with editorial oversight and accountability.

Rating inherited from publication venue: Federal Trade Commission

Relevant to AI governance discussions around synthetic media misuse and regulatory responses to AI-generated deceptive content; represents a concrete US federal policy milestone on AI-enabled consumer manipulation.

Metadata

Importance: 42/100press releaseprimary source

Summary

The FTC issued a final rule in August 2024 explicitly prohibiting the creation, sale, and purchase of fake reviews and testimonials, including those generated by AI. The rule grants the FTC authority to pursue civil penalties against knowing violators, strengthening enforcement against deceptive consumer-facing content. It represents a concrete regulatory response to AI-enabled manipulation of online marketplaces and consumer trust.

Key Points

•Explicitly bans AI-generated fake reviews and testimonials as a form of deceptive advertising subject to FTC enforcement.
•Enables civil penalties against knowing violators, significantly strengthening deterrence beyond prior guidance-only approaches.
•Addresses both the supply side (sellers of fake reviews) and demand side (businesses purchasing them) of fraudulent endorsement markets.
•Aims to protect honest businesses from unfair competitive disadvantage caused by competitors using fabricated social proof.
•Marks a shift toward formal rulemaking on AI-generated deceptive content rather than relying solely on case-by-case enforcement.

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For Release

# Federal Trade Commission Announces Final Rule Banning Fake Reviews and Testimonials

The rule will allow agency to strengthen enforcement, seek civil penalties against violators, and deter AI-generated fake reviews

August 14, 2024

[![Facebook](https://www.ftc.gov/themes/custom/ftc_uswds/img/social-icons/5296499_fb_facebook_facebook%20logo_icon.png)](https://www.ftc.gov/#facebook)[![Twitter](https://www.ftc.gov/themes/custom/ftc_uswds/img/social-icons/x-twitter-black-logo.png)](https://www.ftc.gov/#twitter)[![LinkedIn](https://www.ftc.gov/themes/custom/ftc_uswds/img/social-icons/317750_linkedin_icon.png)](https://www.ftc.gov/#linkedin)

Tags:

- [Consumer Protection](https://www.ftc.gov/consumer-protection)
- [Bureau of Consumer Protection](https://www.ftc.gov/bureau-consumer-protection)
- [Advertising and Marketing](https://www.ftc.gov/business-guidance/advertising-marketing)
- [Endorsements, Influencers, and Reviews](https://www.ftc.gov/business-guidance/advertising-marketing/endorsements-influencers-reviews)
- [Online Advertising and Marketing](https://www.ftc.gov/business-guidance/advertising-marketing/online-advertising-marketing)

The Federal Trade Commission today [announced a final rule](https://www.ftc.gov/legal-library/browse/federal-register-notices/16-cfr-part-465-trade-regulation-rule-use-consumer-reviews-testimonials-final-rule) that will combat fake reviews and testimonials by prohibiting their sale or purchase and allow the agency to seek civil penalties against knowing violators.

[Image\\
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![Consumer Fraud graphic ](https://www.ftc.gov/sites/default/files/styles/scaled_sm/public/u97525/badge-explore-data-fraud1.jpg?itok=_4mow1yd)](https://public.tableau.com/app/profile/federal.trade.commission/viz/FraudandIDTheftMaps/FraudbyState)

“Fake reviews not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors,” said FTC Chair Lina M. Khan. “By strengthening the FTC’s toolkit to fight deceptive advertising, the final rule will protect Ame

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