FTC cracks down on streamer viewbotting with new ruling

The FTC is cracking down on viewbotting, follower buying, and fake reviews from influencers and streamers as part of a new ruling from the agency.

When it comes to viewbotting and fake reviews, it’s always tricky to gauge just how rampant it is in the influencer world as platforms such as YouTube, Twitch, and TikTok aren’t very open about it, and neither are influencers and companies.

However, the Federal Trade Commission has announced a ruling that seeks to combat fake AI-generated reviews which will allow the agency to file penalties against individuals who break it.

Announced on August 14, 2024, the FTC listed a new set of rules businesses will need to follow in regard to reviews, and also consequently “social media indicators”.

They outline how businesses that create or buy fake consumer reviews, such as fake celebrity testimonials, will be prohibited. The ruling will also ban any AI-generated reviews.

Additionally, buying positive and negative reviews, insider reviews, review suppression, and any company-controlled review websites will all be prohibited by the FTC.

This means companies will not be allowed to manipulate reviews in any way, be it by managers or employees giving reviews of a product or paying an influencer for a positive impression.

As part of the new ruling, the FTC also will be banning any influencer from buying fake “indicators”. What this means is that buying followers and viewbotting will be prohibited. This also includes selling them.

According to the FTC, the buying and selling of indicators of social media influence may mislead consumers due to the misrepresentation of a reviewer’s authority.

The FTC’s chair Lina Khan said of the new ruling, “By strengthening the FTC’s toolkit to fight deceptive advertising, the final rule will protect Americans from getting cheated, put businesses that unlawfully game the system on notice, and promote markets that are fair, honest, and competitive.”

The ruling will become active on October 13, 2024. If a business or individual is found to be breaking any of these rules, the agency can seek civil penalties against the violators.

In late 2023, the FTC had warned TikTokers who were promoting aspartame without disclosing that it was part of a paid partnership.