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Government AI United States

AI Smackdown: How a New FTC Rule Also Fights Fake Product Reviews (salon.com) 29

Salon looks closer at a new $51,744-per-violation AI regulation officially approved one month ago by America's FTC — calling it a financial blow "If you're a digital media company whose revenue comes from publishing AI-generated articles and fake product reviews.

But they point out the rules also ban "product review suppression." Per the ruling, that means it's a violation for "anyone to use an unfounded or groundless legal threat, a physical threat, intimidation, or a public false accusation in response to a consumer review... to (1) prevent a review or any portion thereof from being written or created, or (2) cause a review or any portion thereof to be removed, whether or not that review or a portion thereof is replaced with other content."

Finally... The rule makes it a violation for a business to "provide compensation or other incentives in exchange for, or conditioned expressly or by implication on, the writing or creation of consumer reviews expressing a particular sentiment, whether positive or negative, regarding the product, service or business...." [T]he new rule also prevents secretly advertising for yourself while pretending to be an independent outlet or company. It bars "the creation or operation of websites, organizations or entities that purportedly provide independent reviews or opinions of products or services but are, in fact, created and controlled by the companies offering the products or services."

In an earlier statement, FTC Consumer Protection Bureau head Sam Levine, said the new rule "should help level the playing field for honest companies. We're using all available means to attack deceptive advertising in the digital age," he said.

Thanks to long-time Slashdot reader mspohr for sharing the article.

AI Smackdown: How a New FTC Rule Also Fights Fake Product Reviews

Comments Filter:
  • by bill_mcgonigle ( 4333 ) * on Sunday September 22, 2024 @03:34PM (#64808107) Homepage Journal

    ```
    unfounded or groundless legal threat, a physical threat, intimidation, or a public false accusation in response to a consumer review...
    ```

    The big factor is ecommerce sites canceling people's accounts when they write negative reviews.

    You can find numerous examples of very fair negative reviews that got people's accounts canceled and home addresses banned. "Community Standards" is 100% subjective.

    It's not worth leaving reviews anymore which is detrimental to the public good.

    If FTC cared to ensure a fair review system that would be their top target.

    • . "Community Standards" Every time I read something like this, I have to wonder what "community" they are referring to.
    • by gweihir ( 88907 )

      Funny how I have never heard of that type of account cancellations happening in Europe. A company doing this would probably get skewered here. And I have left plenty of (well-reasoned) negative reviews. Some vendors here even use these in advertising, because they have understood that a negative review does not reduce sales, it just means a different product gets sold and the customer has a higher satisfaction. So allowing well-reasoned negative reviews is actually good for business. I guess the ones doing

    • by RitchCraft ( 6454710 ) on Sunday September 22, 2024 @07:04PM (#64808483)

      "The big factor is ecommerce sites canceling people's accounts when they write negative reviews." - or the ability to leave reviews removed. Many years ago I left a negative review on Amazon for a product I purchased (back when I still purchased from Amazon). I had left hundreds of reviews for products I purchased, very few of them negative. A few days after leaving the negative review Amazon sent me an email stating that I could no longer leave reviews because they found evidence that I was getting paid for my reviews violating their "community standards". I never once did this, ever. Furthermore, the email stated that this was a final decision and I could in no way appeal it. All of my previous reviews were removed, all 10 years worth. This really pissed me off and I largely backed off my Amazon purchases. When shit really started getting bad on Amazon about 6 years ago I left completely. It's nothing but an Asian flea market today full of crap and con artists.

    • E-commerce sites do not owe you a platform. They aren't required to have you as a customer.
    • by mjwx ( 966435 )
      This just seems a belated response to the peculiar American penchant to lawyer up at the first sign of trouble. I'd argue that the threat of insolvency via legal action because someone richer than you can afford better lawyers already does far more harm to your first amendment than almost anything else (possible exception of your 2nd amendment) as you're in the situation where your very livelihood, and in the US with no safety nets, that can also mean your life, can be threatened legally and legitimately vi
  • by MindPrison ( 864299 ) on Sunday September 22, 2024 @03:42PM (#64808129) Journal

    It's really simple, you don't need A.i. to fake a review.

    How many youtube videos haven't we seen that opens with :
    Manufacturer sent me this product for review, but I am in no way affiliated with ....

    etc..

    Every youtube - ever - today.

    • by gweihir ( 88907 )

      It is not that simple. Anything sponsored needs higher standards in its reviewers. True, most people do not have that level of honor and integrity, but some do.

  • by Eunomion ( 8640039 ) on Sunday September 22, 2024 @03:42PM (#64808131)
    One of the rare instances where there still appears to be an ongoing and viable struggle against regulatory capture.
    • Re: (Score:3, Interesting)

      by doug141 ( 863552 )

      Hopefully it withstands the SCOTUS overturning of chevron deference.

      • It will if honest people in the judiciary refuse to play along with a bought-and-paid-for ruling.
    • by gweihir ( 88907 )

      Hopefully, they will be able to continue that. Regulatory capture is the beginning of the end. Just look at Boeing or the crap going on on the software space.

  • ... then maybe you are a perpetrator here and need to be stopped?

    That said, I am sure the big assholes will find a way around this and will manage to stay dishonest.

  • Punishment is all well and good if you can detect the problem happening. What tools to mere mortals have for that? And how many people can afford to litigate a company to punish them?

    Even then it won't stop all cases, just make them less publicly obvious. Add one more layer between the publisher and purchaser.

    Don't get me wrong... I prefer making it monetarily bad to do evil things, but I'm not all that excited by it. Heck they mention the courts are where the decisions will happen and too many well me

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