A new federal regulation prohibiting phony online reviews has officially come into play.

The Federal Trade Commission (FTC) released this rule in August, which prevents the buying or selling of online reviews and took effect on Monday. This new legislation empowers the FTC to impose civil penalties on those who intentionally violate the guidelines.

According to FTC Chair Lina Khan, the presence of fake reviews not only squanders consumers’ time and money but also disrupts the marketplace by steering business away from honest players. She emphasized that this regulation aims to safeguard consumers from deceitful practices, alert businesses engaging in such tactics, and foster a transparent, fair, and competitive marketplace.

The rule specifically targets falsified reviews and testimonials that are either penned by fictitious individuals or created through artificial intelligence. It also encompasses reviews written by individuals who lack real experience with the specific business or its goods/services, as well as those that misrepresent an individual’s actual experience.

Additionally, the regulation prohibits companies from creating or selling deceptive reviews or testimonials. Organizations that knowingly purchase or solicit fake reviews—including those that come from employees within the company—face potential penalties. It also bars businesses from making “unfounded or groundless” legal threats, intimidation, or issuing false public accusations.

Consumers can report any infractions related to this new rule through the official FTC fraud reporting portal.