Credit: blacksalmon/Adobe Stock Online Retailers Frustrated That FTC Fake-Review Ban Would Give Tech Giants a Pass
Hindering the agency's efforts to crack down on shady reviews is Section 230 of the Communications Decency Act of 1996, which provides online platform with immunity to claims stemming from third-party content.
February 13, 2024 at 03:15 PM
4 minute read
The original version of this story was published on Corporate Counsel
What You Need to Know
- Federal Trade Commission's proposed rule to slap down fake online reviews would impose fines of $50,120.
- But consumer groups lament that the rule would not apply to third-party platforms such as Google and Facebook.
- The FTC already has authority to press settlements with companies over fake reviews.
A hearing Tuesday on the Federal Trade Commission's proposed rule to crack down on fake online reviews regurgitated previous concerns that it targets individual businesses rather than third-party platforms and tech companies that profit from reviews—real or fake.
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