Federal regulators warn companies that fake reviews on social media could mean fines
WASHINGTON (AP) — Federal regulators say they are cracking down on “an explosion” of businesses’ use of fake reviews and other misleading messages to promote their products and services on social media.
The Federal Trade Commission said it has warned hundreds of major corporations and smaller businesses that they could face fines if they use bogus endorsements to deceive consumers.
“The rise of social media has blurred the line between authentic content and advertising, leading to an explosion in deceptive endorsements across the marketplace,” the FTC said in a news release Wednesday.
The FTC action signals a commitment to flex its authority to use penalties to enforce consumer protection laws. The agency said it has sent formal notices of penalty offenses to about 700 companies, warning they could face penalties …
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