What are the consequences of encountering blatant falsehoods and “fake news”? Here we show that exposure to a high prevalence of very implausible claims can increase belief in other, more ambiguous false claims, as they seem more believable in comparison. Participants in five preregistered experiments (N=5,476) were exposed to lower or higher rates of news headlines that seemed blatantly false, as well as some more plausible true and false headlines. Being exposed to a higher prevalence of extremely implausible headlines increased belief in unrelated headlines which were more ambiguous (or even plausible), regardless of whether they were true or false. The effect persisted for headlines describing hypothetical events, as well as actual true and false news headlines. It occurred whether people actively evaluated the headlines or read them passively, among liberals and conservatives, and among those high or low in cognitive reflection. We observed this effect in environments where the plausibility of a claim was a reliable and useful cue to whether it was true or false, and in environments where plausibility and truth were unrelated. We argue that a high prevalence of blatantly implausible claims lowers the threshold of plausibility for other claims to seem believable. Such relative comparisons are a hallmark of the brain’s tendency towards efficient computations in perception and judgment. Even when consumers can reliably identify and disregard blatantly false news content, encountering such content may make subtler falsehoods more likely to be believed.