X is full of accounts that parody real-life public figures, from politicians to sports professionals and artists. While some accounts mention "Parody" in their display names, others mention it in their bios, which makes some people mistake them for real accounts — including news anchors.
A few app reverse engineers mention that the platform is actually creating a new label for the parody or fan comment accounts so they could clearly identify themselves as parody accounts.
If the company rolls it out, and parody accounts adopt those labels, users will see a "Parody account" label below the username on the profile page, and on their posts, too. This means there is less likelihood of someone confusing a post from a parody account with the real person's account.
The hardest push for the platform would probably be forcing parody accounts to label their profiles. As it stands, X has a parody accounts clause in its Authenticity policy, asking them to comply with the platform's rules of not trying to impersonate other profiles with intent to spread misinformation.
"We permit compliant Parody, Commentary, and Fan (PCF) accounts on X only if the purpose is to discuss, satirize or share information," the policy reads.
If the new label is rolled out, X will also need to have a policy around how satirical accounts might need to adopt the label. If a large chunk of parody accounts don't adopt this label, users will get confused.
Notably, X already has a label for automated bot accounts that use the social network's API to post updates automatically. However, not all bot accounts respect these rules and apply a label. There have been enough reports about bad actors using different automation techniques to control election-related narratives through bot accounts.