The FTC fake review rule, explained for small businesses
Since October 21, 2024, the FTC’s Consumer Reviews and Testimonials Rule bans fake reviews, paying for reviews that must be positive, undisclosed reviews from staff or family, and bullying people into removing bad reviews. Courts can fine knowing violations up to $53,088 each.
Key facts
| Item | Detail |
|---|---|
| Rule | Trade Regulation Rule on the Use of Consumer Reviews and Testimonials, 16 CFR Part 465 |
| In effect since | October 21, 2024 |
| Applies to | Businesses that write, buy, show or ask for consumer reviews and testimonials |
| Penalty | Up to $53,088 per violation for knowing violations. That’s the 2025 inflation-adjusted figure, which the FTC said in September 2026 it will keep applying. |
| Status as of Oct 23, 2026 | In force, with no amendments to Part 465 since 2024 |
What the rule bans
- Fake reviews and testimonials. You can’t write, buy or post reviews from people who don’t exist or never used your service, including reviews written by AI. You’re also on the hook if you knew, or should have known, they were fake.
- Paying for reviews with strings attached. You can’t offer money, discounts or anything else in exchange for a review that has to be positive (or negative).
- Insider reviews without disclosure. Reviews from owners, managers, employees or their relatives must clearly disclose the relationship. Sending the same review request to all customers is fine, even if an employee happens to be one of them.
- Fake “independent” review sites. You can’t pass off a site you control as an independent reviewer of your business.
- Suppressing reviews. You can’t use baseless legal threats, intimidation or false accusations to get a review taken down. You also can’t show only your good reviews while claiming they’re all your reviews.
- Buying fake followers or views to make the business look more popular than it is.
What it doesn’t ban
- Asking customers for reviews. Sending every customer a request is fine.
- Asking only happy customers. The rule doesn’t ban this specifically, but the FTC warns it can still be deceptive under its broader powers. Google’s own policy prohibits it outright, so ask everyone.
Recent enforcement
In December 2025, FTC staff sent warning letters to 10 companies about possible violations of the rule.
Check with your accountant or attorney for your situation.
Sources
- FTC — Consumer Reviews and Testimonials Rule: Questions and Answers — checked Oct 23, 2026
- eCFR — 16 CFR Part 465, Use of Consumer Reviews and Testimonials — checked Oct 23, 2026
- FTC press release — FTC warns 10 companies about possible violations of the consumer review rule (Dec 2025) — checked Oct 23, 2026
- eCFR — 16 CFR 1.98, Adjustment of civil monetary penalty amounts — checked Oct 23, 2026
- Federal Register — Civil Penalty Inflation Adjustments (Sept 15, 2026) — checked Oct 23, 2026