The FTC Rule on Fake Reviews: What It Bans and How to Comply

The FTC rule on fake reviews is the Trade Regulation Rule on the Use of Consumer Reviews and Testimonials (16 CFR Part 465). It bans fake or false reviews and testimonials, including AI-generated fake reviews, incentives tied to a particular sentiment, undisclosed insider reviews, fake independent review sites, review suppression and fake social media metrics. Courts can impose civil penalties for knowing violations.

This article is general information, not legal advice. How the rule applies depends on your facts, so consult a qualified lawyer in your jurisdiction before making a decision based on it.

What the rule is and when it took effect

The Federal Trade Commission approved the final rule on August 14, 2024, by a 5-0 vote, as described in the FTC's announcement of the final rule. It was published in the Federal Register on August 22, 2024 (89 FR 68034) and took effect on October 21, 2024.

The binding text is in 16 CFR Part 465 on eCFR. Most sections apply to a business, which section 465.1 defines as any individual, partnership, corporation or other commercial entity that sells products or services. The definition sets no minimum size, so a single-location shop is covered just like a national chain. Two provisions, on review suppression through threats and on fake social media indicators, apply to anyone.

The rule can also reach the people and firms you work with. The FTC's questions and answers on the rule say ordinary consumers cannot be liable for the reviews they write, while influencers, advertising agencies, PR firms, review brokers and reputation management companies are not immune when their own conduct breaks the rule.

What the rule prohibits: fake, paid and insider reviews

The rule prohibits six practices. Section 465.3 is reserved, so the prohibitions sit in sections 465.2 and 465.4 to 465.8. The examples in the right-hand column are illustrative only. The first three concern who writes a review and why:

What the rule prohibits: review sites, suppression and fake metrics

The other three concern how reviews and social proof are presented:

What the rule still allows

The rule targets deception, not ordinary review management. Several everyday practices remain open to you:

• Asking customers for reviews. The purchase and insider provisions do not apply to reviews that result from generalized solicitations to purchasers (section 465.2(d)). Asking every customer in the same way is the safe pattern; see our guide to getting more Google reviews the policy-safe way.
• Incentives not tied to sentiment. The FTC's Q&A says the rule does not prohibit incentives for reviews. The problem is an express or implied requirement that the review express a particular sentiment. The Q&A adds that failing to disclose an incentive can still violate the FTC Act. Platform rules are often stricter, and some platforms, such as Google, ban incentives altogether: Google's prohibited and restricted content policy bans incentives such as discounts in exchange for reviews.

Moderating, replying and hosting reviews

The rule also leaves room for normal moderation of your own review pages and for answering criticism:

• Withholding reviews by neutral criteria. Under section 465.7(b), a review is not treated as suppressed if it is withheld under criteria applied equally to all reviews, for example because the review contains trade secrets; contains defamatory, harassing or obscene content; contains someone else's personal information; contains clearly false content; is reasonably believed to be fake; or is wholly unrelated to what you sell.
• Replying and resolving. The Q&A confirms you can respond publicly to a review and contact customers to resolve problems. What the rule prohibits is a groundless legal threat, intimidation, or an accusation you know is false or make with reckless disregard for the truth. We don't recommend contacting reviewers with legal threats; talk to a lawyer first.
• Hosting reviews. Merely hosting consumer reviews is excluded from the purchase and insider provisions, and the Q&A says this holds even if you prompt submissions or aggregate star ratings. There is a caveat: according to the Q&A, reviews you feature in your advertising or marketing become testimonials, and the hosting exemption no longer covers them.

Penalties and enforcement so far

The rule allows the FTC to seek civil penalties against knowing violators. When the rule was published in the Federal Register, the Commission noted that the maximum civil penalty was then $51,744 per violation, and that courts must weigh the statutory factors in the FTC Act and may impose much lower amounts per violation.

On December 22, 2025, FTC staff sent warning letters to 10 companies about possible violations of the rule. The FTC said the letters are not formal determinations that the recipients broke the rule; they warned that violations can lead to civil penalties of up to $53,088 per violation.

That ceiling is adjusted for inflation. A Federal Register notice of September 15, 2026 states that the FTC's civil penalty amounts remain unchanged during 2026 and that the 2025 levels continue to apply, so $53,088 per violation is still the maximum.

On May 11, 2026, the FTC and the State of Illinois announced a civil penalty complaint, filed by the Department of Justice, against a home repair company and its owner. The complaint alleges that the defendants created fake business listings, posted fabricated five-star reviews and sought fake reviews from employees and relatives in violation of the rule. A complaint contains allegations, not findings.

A compliance checklist for your business

Work through these steps in order. Most businesses can complete a first pass in an afternoon.

1. Map your review touchpoints. List every place reviews and testimonials appear or are requested: your website, Google, Yelp, marketplaces, emails, receipts, signage and ads.
2. Write a one-page review policy. State that nobody connected to the business writes reviews without disclosure, that requests go to all customers, and that no reward depends on the rating or tone.
3. Check every incentive. Remove any wording that ties a reward to a positive review, and check each platform's own rules before offering anything at all.
4. Brief staff and managers. Explain that employees and their relatives should not post undisclosed reviews and that managers must not ask them to.
5. Audit your on-site reviews. If your website shows reviews, document the moderation criteria and confirm they apply equally to positive and negative reviews.
6. Review your reply process. Replies should be factual and calm, with no threats and no accusations you cannot support. Our guide on whether a business can sue over a bad review covers when legal routes make sense.
7. Check vendors and agencies. Contracts with marketing, PR and review vendors should forbid fake or AI-generated reviews, undisclosed insider reviews and bought followers.
8. Keep records. Save copies of review requests, incentive terms and moderation decisions with dates, so you can show how your process works if asked.

Gray areas worth a closer look

Asking only happy customers

The FTC's Q&A says the rule contains no specific prohibition against asking only customers you think are happy, but that the practice could violate the FTC Act, pointing to the Endorsement Guides. Google's own policy forbids it outright. Our article on review gating and safer alternatives explains the details.

Paying people to take negative reviews down

According to the same Q&A, the rule does not prohibit offering incentives to remove negative reviews, but doing so could be an unfair practice under the FTC Act. Google's content policy also bans incentives for the revision or removal of a negative review.

AI-written reviews versus AI-drafted replies

The FTC's announcement lists AI-generated fake reviews as an example of reviews that misrepresent who wrote them. Using AI to help draft your replies to genuine reviews is a different question, covered in our guide to using AI review responses responsibly.

Fake reviews written about you

The ban on writing fake reviews in section 465.2(a) is not limited to reviews of your own business, and section 465.4 covers incentives for negative reviews as well as positive ones. If you suspect a rival, start with evidence and the platform's reporting tools, as described in what to do if a competitor leaves fake reviews.

If you want an outside view of where your reviews come from and how you currently request them, a free reputation audit is one place to start.