In a significant step to combat deceptive practices in online marketplaces, the Federal Trade Commission has implemented a ban on creating, buying or selling fake reviews.

The new regulation imposes hefty fines — up to $51,744 — for any individual or entity involved in generating false testimonials online, including those created by artificial intelligence.

The rule, unanimously supported by the commissioners, aims to curb the rise of AI-generated reviews, which have recently plagued platforms like Amazon. Additionally, the ruling targets misleading celebrity endorsements and testimonials posted by a company’s employees, relatives or friends, unless accompanied by clear disclaimers.

Brands are also prohibited from offering incentives to encourage dishonest practices. Additionally, the rule prohibits the suppression of negative reviews and insists that businesses refrain from promoting reviews that they know, or reasonably should know, are false.

“By strengthening the FTC’s toolbox to combat deceptive advertising, the final rule will protect Americans from being defrauded, put businesses that illegally game the system on notice, and promote markets that are fair, honest and competitive,” FTC Chairman, Lina Khan , says in a statement.

The introduction of the rule marks a pivotal moment in addressing the widespread issue of fake reviews. In a similar effort, Google recently updated its review policy and imposed new restrictions on business profiles that violate its guidelines.

Companies found guilty of hosting fake reviews will face penalties such as temporarily suspending new review submissions and displaying warning messages to users.