Jesse Coghlan4 hours agoCrypto influencers on notice after FTC bans fake likes and followersNew rules from the FTC mean crypto influencers will face stiff fines for fake followers and likes, while celebrity testimonials are also in the firing line.1048 Total views17 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onCrypto influencers boosting their social media clout with fake followers, views and likes could face fines from the United States consumer protection agency after it finalized rules to combat fake reviews.
The Federal Trade Commission (FTC) said on Aug. 14 that its commissioners voted 5-0 to pass the new federal regulations, which will become effective 60 days after being posted to the Federal Register. This means they could go into effect as soon as October.
The rules bar anyone from “selling or buying fake indicators of social media influence,” including followers or views “generated by a bot or hijacked account.”
“Everyone juicing their views, saves, plays, subs, likes, etc. through any inauthentic means violates the new rule,” US-based advertising lawyer Rob Freund posted to X on Aug. 14.Source:Rob Freund
The ban is limited to those where the buyer knew or should have known they were fake and misrepresented their “influence or importance for a commercial purpose.”
The rule also bans making or buying artificial intelligence-faked reviews from those who don’t have “actual experience” with the product or service being sold — with the FTC naming celebrity testimonials as one culprit.
Reviews from company insiders or suppressing reviews — either positive or negative — have also come under new restrictions, along with new rules for review websites.
Related:Australian regulator claims 58% of crypto ads on Facebook are scams
Penalties for violating the new rule see fines climb as high as $50,000 per violation.
“Fake reviews not only waste people’s time and money but also pollute the marketplace and divert business away from honest competitors,” FTC Chair Lina Khan said in a statement.“The final rule will protect Americans from getting cheated.”
The FTC said last October that it would seek new rules for fake reviews and fake boosted social metrics after trying to get a hold of the fake review space for years.
Magazine:Caitlyn Jenner memecoin ‘mastermind’s’ celebrity price list leaked# Social Media# RegulationAdd reaction