What the New FTC Crackdown on Fake Reviews May Mean for Travel

The U.S. Federal Trade Commission announced a rule Wednesday aiming to punish businesses for buying or selling fake reviews and endorsements – and there are plenty of implications for the travel industry.

It's been a long-running problem in travel and an open secret for over a decade that many hoteliers post fake reviews, often by hiring third parties. The aim is either to make competitor properties look worse or improve their own online ratings. Fake reviews can be created and posted by businesses themselves or by hiring services for as little as a few dollars per review. AI tools promise to turbocharge the practice.

However, this new rule enables the FTC to seek civil penalties of up to $51,744 per violation, and the agency will start enforcing the rule within roughly two mont