The FTC review rules, in plain words
A short rule that is narrower than its summaries and broader than most owners expect, which is an awkward combination to get right by guessing.
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FTC review rules, in one sentence
The FTC review rules are the Federal Trade Commission's Rule on the Use of Consumer Reviews and Testimonials, a United States trade regulation rule that bans several specific practices involving fake and suppressed reviews.
It is codified at 16 CFR Part 465 and it took effect on October 21, 2024. It applies to businesses of every size, not only to platforms and not only to large advertisers.
Six practices are prohibited: fake or false reviews and testimonials, buying positive or negative reviews, undisclosed reviews written by company insiders, a company controlled review site presented as independent, certain review suppression, and fake indicators of social media influence.
The rule is narrower than its summaries, and that is worth reading carefully rather than skipping. The Commission's own guidance says it does not specifically prohibit asking only satisfied customers for a review, while adding that the practice could nonetheless violate the FTC Act. The absence of a named prohibition is not permission.
The six prohibitions, against things a business is actually offered
The rule is short. Here is each prohibition beside the version of it that turns up in a local business inbox.
- Fake reviews and testimonials
- a package of twenty reviews for a new listing
- Buying reviews
- paying for a review, positive or negative, about anyone
- Undisclosed insider reviews
- staff and family posting without saying who they are
- A controlled review site sold as independent
- a comparison site you own that ranks you first
- Review suppression
- a baseless legal threat sent to get a review taken down
- Fake social media indicators
- bought followers or bought engagement
5 of those 6 arrive by email regularly and are declined easily. Number 3, staff and family, is the one that happens without anybody buying anything, and it is a real prohibition rather than a technicality.
Suppression is worth a second read. Asking a platform to remove a review that breaks its own policy is fine. Using false accusations, intimidation or a groundless legal threat to get one removed is what the rule names.
Why it matters more than the guidance that preceded it
A trade regulation rule carries more weight than guidance because the Commission can seek civil penalties for violating one. The exposure is not theoretical for a small business, and the practices named are precisely the ones marketed to small businesses.
It also settles an argument that used to be winnable in a marketing meeting. Buying a starter pack of reviews for a new location was treated as a grey area for years. It is not one now, and no supplier's assurance changes that.
The insider clause is the one to action this quarter. Write down that staff, family and owners do not review the business without disclosing the relationship, say it out loud once, and you have removed the likeliest way you would break this rule by accident.
The misconception: the rule bans review gating
Since the rule landed, gating has often been described as illegal under it, usually by people selling an alternative.
Read the Commission's own question and answer page and the position is more precise. The rule does not specifically prohibit requesting reviews only from customers who were satisfied, and the same page notes that such a practice could violate the FTC Act.
The clear prohibition on gating comes from the platforms rather than from this rule. Google's Maps content policy forbids discouraging negative reviews or selectively soliciting positive ones outright. In practice a business meets platform enforcement first and a regulator second, and both point the same way, so the safe design is the same either way.
FTC consumer review rule questions
Answers for an owner who wants to know what to change on Monday morning.
When did the FTC review rule take effect?
October 21, 2024. It is codified at 16 CFR Part 465 as the Rule on the Use of Consumer Reviews and Testimonials.
Does it apply to a single location business?
Yes. It is a trade regulation rule about conduct, not a threshold rule about company size, and the practices it names are marketed hardest to the smallest businesses.
Can my staff review the business?
Only with a clear disclosure of the relationship. Undisclosed insider reviews are one of the six prohibited practices, and staff reviews are the commonest way a small business meets this rule without intending to.
Can I ask a customer to take down a bad review?
You can ask politely, and you can report a review that breaks the platform's own policy. What the rule prohibits is using false accusations, intimidation or a groundless legal threat to make it happen.
Can I offer anything in exchange for a review?
Not conditioned on the review being positive: the rule reaches incentives carrying an implied requirement for a favorable review. Separately, Google's own policy prohibits offering payment, discounts or free goods in exchange for a review at all.
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