Scope

Social media platforms like Twitter, YouTube, and Instagram have become crucial battlegrounds where <a href="https://thecoinrise.com/crypto-influencers-reveal-their-top-picks-for-massive-profits-in-2023-compound-and-tradecurve/">crypto influencers promote projects</a>, share investment tips, and, in some cases, mislead followers for personal gain. Amid this, the U.S. Federal Trade Commission (FTC) has finalized new regulations targeting fake social media influence, with implications that could ripple through the cryptocurrency world. 
These <a href="https://www.ftc.gov/news-events/news/press-releases/2024/08/federal-trade-commission-announces-final-rule-banning-fake-reviews-testimonials">rules</a>, which were unanimously approved by the FTC’s commissioners on August 14, are designed to combat the growing issue of fabricated online engagement—specifically targeting the sale and purchase of fake followers, views, and likes. 
<h2 id="span-style-font-weight-400-targeting-crypto-influencers-span">Targeting Crypto Influencers</h2> 
The new federal <a href="https://x.com/RobertFreundLaw/status/1823789026249466328">regulations</a>, which will become effective 60 days after being published in the Federal Register, are expected to take effect as early as October. These rules will bar individuals and businesses from “selling or buying fake indicators of social media influence,” including those generated by bots or hijacked accounts. 
The crackdown is particularly relevant in the cryptocurrency industry, where social media influence plays a major role in driving market sentiment. Crypto influencers, who often command large followings and significant sway over market trends, could face hefty fines if found guilty of inflating their online presence through inauthentic means. 
According to the FTC, anyone found “juicing their views, saves, plays, subs, likes, etc. through any inauthentic means” would be in violation of the new rules. The penalties for such violations could reach up to $50,000 per infraction, sending a clear message about the seriousness of this regulatory shift. 
<h2 id="span-style-font-weight-400-the-scope-of-the-new-rules-span">The Scope of the New Rules</h2> 
The FTC’s new regulations go beyond just fake social media metrics. They also target fake reviews, particularly those generated by artificial intelligence (AI) from individuals who lack actual experience with the product or service being promoted. 
The rule aims to curb deceptive practices, including false endorsements by celebrities, insider reviews from company employees, and the suppression of genuine reviews, whether positive or negative. 
The FTC has been working toward this crackdown for some time, announcing last October its intention to seek new rules to address the issue of fake reviews and inflated social metrics. 
As crypto influencers increasingly become a target for regulatory scrutiny, the FTC’s rules could also influence how cryptocurrency projects approach marketing and public relations. 
The FTC’s move is part of a broader trend of regulatory bodies around the world taking action against misleading online practices. Last year, the <a href="https://thecoinrise.com/uk-regulators-taps-celebrity-to-caution-influencers-against-fraudulent-crypto-schemes/">UK’s Financial Conduct Authority (FCA) and the Advertising Standards Authority (ASA) launched</a> initiatives to educate financial influencers about the risks of promoting illegal schemes, particularly those promising quick wealth. 
The post <a href="https://thecoinrise.com/ftc-brings-new-regulations-to-crack-down-fake-crypto-influencers/">FTC Brings New Regulations to Crack Down Fake Crypto Influencers</a> appeared first on <a href="https://thecoinrise.com">TheCoinrise.com</a>.

FTC Brings New Regulations to Crack Down Fake Crypto Influencers

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