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FTC bans fake reviews. Sorry, scammers.

A blow to the manipulative forces polluting e-commerce and social media platforms.

8/15/24 12:01PM

The FTC has finalized its fake review ban, which covers many of the sneaky review shenanigans that have plagued e-commerce sites for years, as well as shady social media practices like buying fake followers.

The final rule will go into effect in a few months, and it places steep maximum civil penalties of up to $51,744 per violation.

“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 Khan in a press release.

The FTC rules strike at the heart of a shadowy industry that seeks to game and manipulate e-commerce and social media platforms for profit. Public trust in online reviews has been damaged by the extensive use of these practices, which have persisted for years despite extensive scrutiny.

According to the FTC's announcement of the final rule, here are the kinds of manipulation that are now banned:

Fake consumer reviews of any kind, such as AI generated reviews, the use of fake reviewers, and anyone who didn't actually have any experience with the product. Testimonials featuring celebrities who have no experience with the product are also banned.
Companies can't buy or incentivize positive or negative reviews. This includes the common practice on e-commerce marketplaces where free or steeply discounted goods are offered in exchange for positive reviews.
Company insiders aren't allowed to write reviews about their own products that fail to disclose their connection to the company, and they are also not allowed to force employees to do the same. In a blow to small pizza shops everywhere, this even includes preventing company owners from asking family members to write reviews on behalf of their business.
Companies can't run a review website that claims to offer independent reviews about products that they happen to sell.
Companies can't use any kind of threats or intimidation to remove negative reviews, and they can't hide bad reviews if they are presenting the product's reviews as the full set of reviews. For example, a restaurant could advertise some select positive authentic reviews on their website, but for their listing on a platform like Yelp that shows all reviews, they couldn't just pay someone to remove the bad reviews.
Manipulation of social media accounts through buying followers, views, or comments when the buyer knows the activity is fake, is now banned. So, a doctor seeking to quickly boost the ratings of their practice on Yelp won't be able to buy a bunch of fake positive reviews.

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Like its rival GM earlier this week, Ford on Thursday night confirmed to Reuters that it will not claim the tax credit, backing off from its short-lived leasing strategy.

The automakers’ plan was to extend the subsidy by using their financial arms to put down payments on electric vehicles already on their dealers’ lots in late September. Those transactions would qualify for the credit, and Ford and GM could pass the discount on to customers through leases.

But the strategy angered GOP senators, who last week wrote a letter to Treasury Secretary Scott Bessent accusing the automakers of “bilking” taxpayers.

Ford CEO Jim Farley last month said he expects the end of the tax credit to cut EV sales in half.

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Ford CEO Jim Farley last month said he expects the end of the tax credit to cut EV sales in half.

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Domino’s just announced its first rebrand in 13 years — maybe a new, “doughier” font will help sales pick up

Shaboozey! Domino’s Sans! Hotter colors as a nod to the melty heat of a pizza pulled fresh from the oven!

In a buzzword-laden justification of its rebrand yesterday, Domino’s laid plain its new aesthetic direction, coined the term “Cravemark,” and announced it would be bringing the focus back to its food, having (at least in its executive vice president’s words) become known as “a technology company that happens to sell pizza” over the last decade.

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The raft of changes, which will roll out across the US and other international markets in the coming months, includes a new “audio and visual expression” of the brand’s name (throwing a few extra M’s on the boxes and getting country/hip-hop artist Shaboozey to elongate the letter in a jingle); brighter packaging and hotter colors; “more youthful” team uniforms (company-color Salomons and an apron with “pizza is brat” on it, maybe?); and a new “Domino’s Sans” font, which is “thicker and doughier” and has circles and semicircles “in nod to pizza, with lots of personality baked right in!”

Domino’s is down about 2% so far this year.

Domino's® New Craveable Brand Refresh Makes You Say "Mmm" | Domino's Pizza