FTC Finalizes Rule Banning Fake Reviews, Including Those Made With AI

TechCrunch’s Lauren Forristal reports: The U.S. Federal Trade Commission (FTC) announced on Wednesday a final rule that will tackle several types of fake reviews and prohibit marketers from using deceptive practices, such as AI-generated reviews, censoring honest negative reviews and compensating third parties for positive reviews. The decision was the result of a 5-to-0 vote. The new rule will start being enforced 60 days after it’s published in the official government publication called Federal Register. […]

According to the final rule, the maximum civil penalty for fake reviews is $51,744 per violation. However, the courts could impose lower penalties depending on the specific case. “Ultimately, courts will also decide how to calculate the number of violations in a given case,” the Commission wrote. […] The FTC initially proposed the rule on June 30, 2023, following an advanced notice of proposed rulemaking issued in November 2022. You can read the finalized rule here (PDF), but we also included a summary of it below:

– No fake or disingenuous reviews. This includes AI-generated reviews and reviews from anyone who doesn’t have experience with the actual product.
– Businesses can’t sell or buy reviews, whether negative or positive.
– Company insiders writing reviews need to clearly disclose their connection to the business. Officers or managers are prohibited from giving testimonials and can’t ask employees to solicit reviews from relatives.
– Company-controlled review websites that claim to be independent aren’t allowed.
– No using legal threats, physical threats or intimidation to forcefully delete or prevent negative reviews. Businesses also can’t misrepresent that the review portion of their website comprises all or most of the reviews when it’s suppressing the negative ones.
– No selling or buying fake engagement like social media followers, likes or views obtained through bots or hacked accounts.

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Study Finds 94% of Business Spreadsheets Have Critical Errors

A recent study reveals that 94% of spreadsheets used in business decision-making contain errors, highlighting significant risks of financial and operational mistakes. Phys.org reports: Errors in spreadsheets can lead to poor decisions, resulting in financial losses, pricing mistakes, and operational problems in fields like health care and nuclear operations. “These mistakes can cause major issues in various sectors,” adds Prof. Pak-Lok Poon, the lead author of the study. Spreadsheets are crucial tools in many fields, such as linear programming and neuroscience. However, with more people creating their own spreadsheets without formal training, the number of faulty spreadsheets has increased. “Many end-users lack proper software development training, leading to more errors,” explains Prof. Poon.

The research team reviewed studies from the past 35.5 years for journal articles and 10.5 years for conference papers, focusing on spreadsheet quality and related techniques across different fields. The study found that most research focuses on testing and fixing spreadsheets after they are created, rather than on early development stages like planning and design. This approach can be more costly and risky. Prof. Poon emphasizes the need for more focus on the early stages of spreadsheet development to prevent errors. The study suggests that adopting a life cycle approach to spreadsheet quality can help reduce errors. Addressing quality from the beginning can help businesses lower risks and improve the reliability of their decision-making tools. The study has been published in the journal Frontiers of Computer Science.

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Texas Sues General Motors, Alleging Illegal Selling of Driver Data

In a press release today, Texas Attorney General Ken Paxton said he has filed a lawsuit against General Motors, alleging the carmaker illegally collected and sold drivers’ data to insurance companies without their consent or knowledge. CNN reports: In car models from 2015 and later, the Detroit-based car manufacturer allegedly used technology to “collect, record, analyze, and transmit highly detailed driving data about each time a driver used their vehicle,” according to the AG’s statement. General Motors sold this information to several other companies, including to at least two companies for the purpose of generating “Driving Scores” about GM’s customers, the AG alleged. The suit said those two companies then sold these scores to insurance companies.

Insurance companies can use data to see how many times people exceeded a speed limit or obeyed other traffic laws. Some insurance firms ask customers if they want to voluntarily opt-in to such programs, promising lower rates for safer drivers. But the attorney general’s office claimed GM “deceived” its Texan customers by encouraging them to enroll in programs such as OnStar Smart Driver. But by agreeing to join these programs, customers also unknowingly agreed to the collection and sale of their data, the attorney general’s office said. “Despite lengthy and convoluted disclosures, General Motors never informed its customers of its actual conduct — the systematic collection and sale of their highly detailed driving data,” the AG’s office said in a statement. The filing can be read here (PDF).

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Google’s Pixel 9 Phones Are the First To Get Satellite SOS For Android