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Feds warn companies: Fake online reviews could lead to fines

elisfkc2 / Flickr / CC BY-SA 2.0

AP Business Writer

WASHINGTON (AP) — Federal regulators say they are cracking down on what they’re calling 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 says it has warned hundreds of major corporations and smaller businesses that they could face fines if they use bogus endorsements to deceive consumers. 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 of up to $43,792 for each violation.

Associated Press

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