Hunton Retail Law Resource

Fake reviews and testimonials for services and products have been under the watchful eye of the Federal Trade Commission (FTC) for decades. With the proliferation of online bots and generative Artificial Intelligence (AI) tools, reviews and testimonials have been even easier to fake in recent years. On August 14, 2024, the FTC announced the Final Rule on the Use of Consumer Reviews and Testimonials, prohibiting fake reviews and testimonials from being sold or purchased by businesses. Importantly, the Final Rule enables the FTC to seek civil penalties against knowing violators.

Earlier this month, the Securities and Exchange Commission (SEC) released its Spring 2024 Regulatory Flexibility Agenda, which sets out the SEC’s rulemaking agenda for the upcoming year. Some observers may have been wondering if Chair Gensler and the SEC would plan to advance any further rulemaking actions before the November elections. It is true that actions could be taken ahead of the proposed dates in the agenda, but many signs point to the SEC proceeding deliberately and without undue haste with this round of rulemaking. Several agenda items in the proposed and final rule stages from prior RegFlex agendas have been postponed to April 2025.