diff --git a/packages/api/src/resolvers/recommendations/index.ts b/packages/api/src/resolvers/recommendations/index.ts
index 8dd3b1d09..bb1a48aac 100644
--- a/packages/api/src/resolvers/recommendations/index.ts
+++ b/packages/api/src/resolvers/recommendations/index.ts
@@ -25,6 +25,7 @@ import {
 } from '../../generated/graphql'
 import {
   createGroup,
+  createLabelAndRuleForGroup,
   getInviteUrl,
   getRecommendationGroups,
   joinGroup,
@@ -71,6 +72,8 @@ export const createGroupResolver = authorized<
       expiresInDays: input.expiresInDays,
     })
 
+    await createLabelAndRuleForGroup(uid, group.name)
+
     const inviteUrl = getInviteUrl(invite)
     const user = userDataToUser(userData)
 
@@ -263,6 +266,8 @@ export const joinGroupResolver = authorized<
 
     const group = await joinGroup(user, inviteCode)
 
+    await createLabelAndRuleForGroup(user.id, group.name)
+
     return {
       group,
     }
diff --git a/packages/api/src/services/groups.ts b/packages/api/src/services/groups.ts
index 2cebfaa91..716ccdddc 100644
--- a/packages/api/src/services/groups.ts
+++ b/packages/api/src/services/groups.ts
@@ -8,6 +8,9 @@ import { RecommendationGroup, User as GraphqlUser } from '../generated/graphql'
 import { getRepository } from '../entity/utils'
 import { homePageURL } from '../env'
 import { userDataToUser } from '../utils/helpers'
+import { createLabel } from './labels'
+import { createRule } from './rules'
+import { RuleActionType } from '../entity/rule'
 
 export const createGroup = async (input: {
   admin: User
@@ -200,3 +203,27 @@ export const leaveGroup = async (
     return true
   })
 }
+
+export const createLabelAndRuleForGroup = async (
+  userId: string,
+  groupName: string
+) => {
+  // create a new label for the group
+  const label = await createLabel(userId, { name: groupName })
+
+  // create a rule to add the label to all pages in the group
+  await createRule(userId, {
+    name: groupName,
+    actions: [
+      {
+        type: RuleActionType.AddLabel,
+        params: [label.id],
+      },
+      {
+        type: RuleActionType.SendNotification,
+        params: [groupName],
+      },
+    ],
+    filter: `recommendedBy:"${groupName}"`,
+  })
+}
diff --git a/packages/api/src/services/labels.ts b/packages/api/src/services/labels.ts
index cb8432b06..b20baeee2 100644
--- a/packages/api/src/services/labels.ts
+++ b/packages/api/src/services/labels.ts
@@ -6,6 +6,7 @@ import { addLabelInPage } from '../elastic/labels'
 import { getRepository } from '../entity/utils'
 import { Link } from '../entity/link'
 import DataLoader from 'dataloader'
+import { generateRandomColor } from '../utils/helpers'
 
 const batchGetLabelsFromLinkIds = async (
   linkIds: readonly string[]
@@ -76,3 +77,29 @@ export const getLabelsByIds = async (
     select: ['id', 'name', 'color', 'description', 'createdAt'],
   })
 }
+
+export const createLabel = async (
+  userId: string,
+  label: {
+    name: string
+    color?: string
+    description?: string
+  }
+): Promise<Label> => {
+  const existingLabel = await getRepository(Label).findOneBy({
+    user: { id: userId },
+    name: ILike(label.name),
+  })
+
+  if (existingLabel) {
+    return existingLabel
+  }
+
+  // create a new label and assign a random color if not provided
+  label.color = label.color || generateRandomColor()
+
+  return getRepository(Label).save({
+    ...label,
+    user: { id: userId },
+  })
+}
diff --git a/packages/api/src/services/rules.ts b/packages/api/src/services/rules.ts
new file mode 100644
index 000000000..c4fa6e2a3
--- /dev/null
+++ b/packages/api/src/services/rules.ts
@@ -0,0 +1,27 @@
+import { Rule, RuleAction } from '../entity/rule'
+import { getRepository } from '../entity/utils'
+import { ILike } from 'typeorm'
+
+export const createRule = async (
+  userId: string,
+  rule: {
+    name: string
+    description?: string
+    actions: RuleAction[]
+    filter: string
+  }
+): Promise<Rule> => {
+  const existingRule = await getRepository(Rule).findOneBy({
+    user: { id: userId },
+    name: ILike(rule.name),
+  })
+
+  if (existingRule) {
+    return existingRule
+  }
+
+  return getRepository(Rule).save({
+    ...rule,
+    user: { id: userId },
+  })
+}
diff --git a/packages/api/src/utils/helpers.ts b/packages/api/src/utils/helpers.ts
index a3137fbfb..45fefe83c 100644
--- a/packages/api/src/utils/helpers.ts
+++ b/packages/api/src/utils/helpers.ts
@@ -273,3 +273,13 @@ export const wordsCount = (text: string, isHtml = true): number => {
 export const isBase64Image = (str: string): boolean => {
   return str.startsWith('data:image/')
 }
+
+export const generateRandomColor = (): string => {
+  return (
+    '#' +
+    Math.floor(Math.random() * 16777215)
+      .toString(16)
+      .padStart(6, '0')
+      .toUpperCase()
+  )
+}