ALBUQUERQUE, N.M. (WHAT THE TECH?) — With advances in AI, it’s getting harder to spot fake customer reviews and the Federal Trade Commission is cracking down on that.

Especially when one analysis found that nearly half of all Amazon reviews are either fake or paid for. That’s an issue as 75% of shoppers say they look at reviews before deciding which items to buy.

Sellers have figured out ways to flood listings with fake reviews. Now the FTC says they’ll fine sellers who use fake reviews.

The FTC’s new rules prohibit sellers from posting reviews written by AI or purchasing fake reviews that are either positive or negative.

It requires reviews written by the company or associates and employees to state their connections with the business.

And it prohibits sellers from offering compensation or enticements in exchange for positive reviews.

If a business or seller is found to break any of these rules, the FTC has the power to fine them up to $51,744. Per violation.

The rules would seem to affect Amazon’s Vine Voices program that allows sellers to offer free products in exchange for an ‘honest review’. Walmart has a similar program.

Amazon has tackled fake customer reviews itself, removing more than 200 million suspected fake reviews in 2022 alone. But they persist. The website Fakespot analyzed Amazon reviews and found 42% of them are fakes.

The FTC says without the ability to impose civil penalties, enforcement of the new rules would have little effect. A seller of a product with just 5 fake reviews could face a fine of over $250,000.

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