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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.

Max Knoblauch6/15/26

Electronic Arts launches a platform to put more ads in its games

Video game publishing giant EA launched a new platform on Monday designed to make the process of selling immersive ad space in its popular games easier.

The company says the platform, called EA Advertising, allows brands to “integrate directly into gameplay through dynamic, real-time placements, from stadium signage to custom in-game content.”

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

Electronic Arts Makes Push for Ad Dollars Tied to Sports

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JM Smucker says it sold $1 billion worth of Uncrustables in FY2026

After years of booming sandwich sales, JM Smucker has finally earned a billion-dollar crust.

On Tuesday, the company reported results for fiscal year 2026, highlighting better-than-expected profits driven by higher prices for coffee and sweet baked goods. However, at another point on the earnings call, CEO Mark Smucker pointed to one particularly jammy figure: in line with previous forecasts, the company sold $1 billion worth of its (almost always) crustless sandwiches, Uncrustables, in the last year alone.

Max Knoblauch6/8/26

Paramount reportedly offers concessions to resolve multistate antitrust investigation

Paramount has reportedly offered up some concessions in an effort to prevent an antitrust lawsuit by California and about 10 other states, according to Bloomberg reporting on Monday.

Reuters first reported on the potential suit from a group of unnamed states last week, which could throw a wrench in Paramount’s plans to buy rival Warner Bros. Discovery in a Hollywood megamerger.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

Paramount Offers Concessions to Head Off State Antitrust Lawsuit

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

$98B ⛽

Max Knoblauch6/8/26

The IATA released its latest financial outlook for the airline industry over the weekend, forecasting a $98 billion jump in the sector’s collective fuel bill. The world’s largest trade group representing airlines expects the oil spike to halve profits by 49% from last year to $23 billion.

The group also expects profit margins to halve year over year, falling from 2025’s 4.2% to 2%. Still, revenue is expected to climb to $1.17 trillion from $1.07 trillion.

A surge in the cost of jet fuel has rocked US and global airlines this year, leading Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, JetBlue, and others to raise fares and ancillary charges like bag fees. Low-cost carriers, which operate on smaller margins, have been squeezed the hardest, resulting in Spirit’s shutdown.

“It’s a tough year for all airlines, especially those whose balance sheets had not yet recovered from COVID. And, of course, for those operating in the Gulf,” said IATA Director General Willie Walsh, who added that demand is holding up and about half of passengers expect to spend more on travel this year. “That bodes well for a strong northern summer peak season. The big unknown is how long travelers and shippers can tolerate the higher costs of connectivity.”

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The Switch 2 launched on this day in 2025. Amid a rough year for consoles, Nintendo has logged a good one.

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