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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 1:01PM

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.

$35.4B

Max Knoblauch5h

The tariffs imposed by the Trump administration have cost automakers at least $35.4 billion since the start of 2025, according to a new analysis by Automotive News.

That total will continue to climb this year, since the Supreme Court’s February tariff ruling largely leaves the 25% levy on vehicles and auto parts untouched.

Toyota has taken the biggest hit, projecting more than $9 billion in tariff costs in its fiscal year ending this month, while Detroit’s big three automakers — Ford, GM, and Stellantis — were hit with a combined $6.5 billion tariff charge in 2025.

In the fourth quarter, automakers sold about 8% fewer imported vehicles in the US compared to the same period a year ago, per the Automotive News Research & Data Center.

Tariff charges come at a rough time for legacy carmakers, which are also scaling back EV plans following the Trump administration’s elimination of tax credits and fuel standard goals. According to Automotive News, the cost of EV write-downs and restructuring is, so far, nearly $70 billion.

Universal Studios is giving theaters a longer minimum exclusive run

Universal will now guarantee a minimum of five weekends before a movie hits home screens — which might help theater companies like AMC finally get back to profitability.

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Tesla Will Open Up Its Chargers To Other Brands, In Order To Receive Federal Subsidies

After a big pullback for EVs, climbing gas prices are causing drivers to eye them again

Still, the market is much different than it was the last time oil prices were this high.

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Hyunsoo Rim

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McDonald’s plans $3 menu items as fast food loses its price edge

Americans are spending more of their dining-out dollars at full-service restaurants again.

Fast food value meals for Trending feature in Food

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How Tesla quietly wound up owning a small piece of SpaceX

Tesla is converting its recent $2 billion investment in Elon Musk’s AI company, xAI, into a small ownership stake in SpaceX — just months before the rocket maker’s highly anticipated IPO.

Here’s what happened: Tesla announced its xAI investment in late January, after a shareholder proposal to invest fell short last year. Several days later, xAI merged with SpaceX. All three companies are headed by Musk.

Now, regulatory filings with the Federal Trade Commission show Tesla converting that investment into a small stake in SpaceX, formalizing the financial link between the companies ahead of the rocket maker’s IPO. SpaceX is expected to go public this year at a valuation some speculate could top $1.75 trillion, potentially making it the biggest company to ever go public. (The current record holder, Saudi Aramco, went public at a more than $1.7 trillion valuation in 2020.)

While the size of Tesla’s stake wasn’t available, Bloomberg reports that the investment would equate to ownership of less than 1%.

While SpaceX and Tesla have engaged in related-party transactions over the years, Tesla had not previously disclosed an equity investment in SpaceX.

Tesla Converts xAI Investment Into SpaceX Stake Ahead of IPO