# 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.

_Category: Policy · Updated 2026-08-15 · By Elizabeth Davis_

Source: https://happyreplies.com/glossary/ftc-review-rule

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.

Reference: [FTC rule on consumer reviews and testimonials](https://www.ftc.gov/legal-library/browse/rules/rule-consumer-reviews-testimonials)

## FAQ

### Does the FTC rule apply to small businesses?

Yes. It applies to businesses of any size, and to agencies acting on their behalf.

## Related terms

- https://happyreplies.com/glossary/review-gating
- https://happyreplies.com/glossary/fake-review
- https://happyreplies.com/glossary/incentivised-review