Aug 14 (Reuters) - The U.S. Federal Trade Commission on

Wednesday finalized a ban on companies knowingly buying or

selling fake online reviews, giving the agency the power to levy

fines against the shadowy practice.

The ban covers trafficking in fake reviews, whether by

non-existent customers, company insiders or artificial

intelligence. It also prohibits buying and selling fabricated

views or followers on social media, and using intimidation

tactics to remove negative reviews.

The FTC can seek a maximum penalty of up to around $51,744

per violation.

"Fake reviews not only waste people's time and money, but

also pollute the marketplace and divert business away from

honest competitors," FTC Chair Lina Khan said in a statement.

The rule does not require platforms that simply publish

consumer reviews to verify their veracity.

Teresa Murray, a consumer advocate at U.S. Public Interest

Research Group, said the rule is an important protection for

online shoppers, 90% of whom base purchase decisions in part on

reviews.

"We hope this puts fear in companies so they do the right

thing, even if it's just because they're afraid of the

consequences," Murray said.