FTC’s Enforcement Against Streamer Viewbotting Strengthened with New Ruling

The FTC has implemented a new ruling to combat viewbotting, follower buying, and fake reviews from influencers and streamers.

It can be difficult to determine the extent of viewbotting and fake reviews in the influencer world. This is because platforms like YouTube, Twitch, and TikTok are not transparent about it, and neither are influencers and companies.

Nevertheless, the Federal Trade Commission has issued a ruling aimed at addressing fake AI-generated reviews. This ruling enables the agency to impose penalties on those who violate it.

On August 14, 2024, the FTC released a new set of regulations that businesses must adhere to regarding reviews and “social media indicators”.

The guidelines specify that businesses engaging in the production or purchase of fabricated consumer reviews, including falsified endorsements from celebrities, will be restricted. The decision will also prohibit the use of artificially generated reviews.

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Moreover, the Federal Trade Commission will prohibit the purchase of positive and negative reviews, insider reviews, any attempts to suppress reviews, and the use of company-controlled review websites.

This policy prohibits companies from manipulating reviews in any manner, whether it be through managers or employees giving product reviews or paying an influencer for a biased impression.

Under the new ruling, the FTC will also prohibit any influencer from purchasing fabricated “indicators”. This encompasses the act of buying followers and using viewbotting, as well as selling them.

The FTC has stated that the trade of social media influence indicators could deceive consumers by misrepresenting the reviewer’s credibility.

The final rule, according to FTC chair Lina Khan, will enhance the agency’s ability to combat deceptive advertising. She stated that the rule will safeguard Americans from falling victim to fraudulent practices, serve as a warning to businesses engaging in unlawful activities, and promote a fair, honest, and competitive marketplace.

The rule will take effect on October 13, 2024. In the event that a company or individual is found to be violating any of these regulations, the agency has the authority to pursue civil penalties against them.

In late 2023, the FTC issued a warning to TikTokers who were promoting aspartame without disclosing their paid partnership.