On 14 August 2024, The Federal Trade Commission (FTC) announced a significant update to its regulations with the introduction of a final rule (16 CFR Part 465) designed to crack down on deceptive practices involving consumer reviews and testimonials. This rule is particularly noteworthy for its focus on combating the misuse of AI in generating fake reviews.

The new rule builds upon an advance notice of proposed rulemaking and a subsequent notice of proposed rulemaking issued in November 2022 and June 2023, respectively. It aims to address a range of deceptive practices in the digital age, emphasizing the need for transparency and integrity in online reviews and testimonials.