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"Instead of Disputed Flags, we'll use Related Articles to help give people more context about the story," Tessa Lyons, Product Manager at Facebook, wrote in a blog post on Friday.
Academic research on correcting misinformation has shown that putting a strong image, like a red flag, next to an article may actually entrench deeply held beliefs.
"Related Articles, by contrast, are simply designed to give more context, which our research has shown is a more effective way to help people get to the facts," Facebook said.
"This will not directly impact News Feed in the near term.
However, it may help us better measure our success in improving the quality of information on Facebook over time," the company said.
"Demoting false news (as identified by fact-checkers) is one of our best weapons because demoted articles typically lose 80 per cent of their traffic.
"This destroys the economic incentives spammers and troll farms have to generate these articles in the first place," Facebook posted.
As part of the initiative, an icon will appear next to articles in Facebook News Feed. When you click on the icon, you can read information on the organisations' ethics and other standards, the journalists' backgrounds, and how they do their work.