Policy
FTC review rule
The FTC's Rule on the Use of Consumer Reviews and Testimonials, effective 2024, prohibits fake and AI-generated reviews, review suppression, undisclosed insider reviews, and buying positive or negative reviews.
It covers conduct most businesses did not previously treat as risky: suppressing a negative review through threats or unjustified takedown demands, and publishing insider reviews from employees or family without disclosing the relationship.
Penalties are civil and per-violation, which makes systematic practices considerably more expensive than one-off lapses.
In practice
Audit three things: whether any review request branches on sentiment, whether staff or family have reviewed you without disclosure, and whether anyone has been discouraged from posting.
Source: FTC rule on consumer reviews and testimonials
Common questions
- Does the FTC rule apply to small businesses?
- Yes. It applies to businesses of any size, and to agencies acting on their behalf.