The FTC's new rule targets fake reviews and deceptive practices. It bans fake and AI-generated reviews, payments for positive reviews, undisclosed connections, and threats to remove negative reviews. Buying fake likes or followers is also prohibited. The rule aims to improve marketplace integrity and takes effect 60 days after publication. Businesses must audit review practices and comply to avoid fines.
The FTC and DOJ sued TikTok and ByteDance for violating the Children's Online Privacy Protection Act (COPPA) and a 2019 FTC consent order. The complaint alleges TikTok collected personal data from children under 13 without parental consent, allowed children to bypass age restrictions, and failed to delete children's data upon request. TikTok also shared children's data with third parties and made it difficult for parents to delete accounts.
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