The Federal Trade Commission (“FTC” or the “Commission”) announced a final rule targeting buying and selling fake reviews and testimonials on August 14, 2024. (Mitchell J. Katz, FTC.gov). This final rule is the result of a two-year process initiated in 2022 with an advanced notice of proposed rulemaking followed by a notice of proposed rulemaking in June 2023, and finally an informal hearing on the proposed rulemaking in February of 2024. Id. The final rule was then announced on August 14, 2024, where the Commission outlined activities the rule will regulate, primarily the buying, selling, or fabricating of fake online reviews and testimonials. Id. Fake online reviews can pop up anytime something is sold or rated online, ranging from travel review sites to e-commerce businesses to paid influencer testimonials, and make up an estimated 16% to 40% of all online reviews. (Heidi Mitchell, Wall Street Journal). According to FTC Chair Lina Khan, the final rule is necessary because fake reviews “not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors.” (Mitchell J. Katz, FTC.gov). Confusingly, however, in the FTC’s federal register notice of the final rule (a detailed document which accompanies all FTC rulemaking), the Commission stated that the buying and selling of fake reviews was already illegal under Section 5 of the FTC Act. (15 U.S.C. § 45; FTC, Final Register Notice). This begs the question, why was this new rulemaking necessary? This post examines why the Commission deems this rule necessary, what activities the final rule prohibits, and how it can be used to help consumers.

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