The FTC Fake Reviews Rule: What Sellers Can and Can't Do
Reviews sell products, which is exactly why regulators watch them closely. Since October 21, 2024, the US Federal Trade Commission's Consumer Reviews and Testimonials Rule has banned fake reviews, paying for positive sentiment and several other tactics, with civil penalties for knowing violations. For brands and factories selling to US customers, this guide explains what the rule prohibits, what is still allowed, and how to build reviews safely.
The rule in brief
The FTC announced the final rule on August 14, 2024 after a 5-0 vote, and it went into effect on October 21, 2024. The rule (16 CFR Part 465) lets courts impose civil penalties for knowing violations. Under the FTC's penalty schedule in 16 CFR § 1.98, the maximum for violations under Section 5(m)(1)(A) of the FTC Act is $53,088 per violation for penalties assessed after January 17, 2025.
Penalties are counted per violation. When each fake review or each incentivized review can be a separate violation, the totals can grow quickly.
What the rule prohibits
| Section | Prohibited practice | What it looks like for sellers |
|---|---|---|
| § 465.2 | Fake or false reviews and testimonials | Reviews by people who don't exist (including AI-generated) or who misrepresent their experience; buying such reviews or posting them when you knew or should have known they were fake |
| § 465.4 | Buying positive or negative reviews | Offering a refund, gift card or free product on the condition, stated or implied, that the review is positive (or that a competitor's is negative) |
| § 465.5 | Undisclosed insider reviews | Reviews by employees, managers or their relatives without clear disclosure of the connection |
| § 465.6 | Company-controlled "independent" review sites | Running a "best products" site that presents itself as independent while featuring your own brand |
| § 465.7 | Review suppression | Threats or intimidation to remove negative reviews, or claiming displayed reviews represent all reviews when negatives were suppressed |
| § 465.8 | Fake social media influence | Buying fake followers or views to look more influential for commercial purposes |
Sources: FTC press release (Aug 14, 2024) and FTC Q&A on the rule.
What is still allowed
According to the FTC's Q&A, businesses can offer incentives for reviews as long as there is no "express or implied requirement" that the reviews express a particular sentiment. The FTC adds that failing to disclose incentives could still violate the FTC Act. Marketplace rules can be stricter than the FTC rule: Amazon, for example, does not allow sellers to offer incentives for reviews outside its own programs, so always follow the platform's current review policy as well.
Practices that generally fit both the law and marketplace rules:
- Using the platform's own review tools, such as Amazon's "Request a Review" button or the Vine program for eligible brands.
- Neutral follow-up messages that ask for honest feedback, without mentioning stars or offering anything.
- Influencer and creator content with clear disclosure of free products or payment.
- Replying to negative reviews politely and fixing the underlying issue.
Common risks for cross-border sellers
- Insert cards. Cards that offer a gift or refund "for a 5-star review" break the rule's ban on buying positive sentiment and marketplace policy.
- Review services. Agencies that promise a set number of reviews often rely on fake or paid reviews. Under the rule, you can be liable if you knew or should have known.
- Staff and family reviews. Reviews from factory staff, sales teams or their relatives count as insider reviews.
- Pressure on critics. Threatening a customer over a bad review can be treated as review suppression.
- Bought followers. Buying followers or views for a brand or creator account to look bigger is covered by the rule.
Review compliance checklist
- Remove any insert card or message that links a reward to a review or to a star rating.
- Stop any service that "guarantees" reviews; keep records of who you hire.
- Tell employees and partners not to review your products, or to disclose the relationship where allowed.
- Require clear disclosures in creator and influencer agreements.
- Answer negative reviews with facts and solutions, never threats.
- Check each marketplace's current review policy before running any review campaign.
This article is general information, not legal advice.
How Atronia Innovations can help
We grow reviews the compliant way through listing quality, platform review programs, customer service and creator campaigns with proper disclosure. If you want a review strategy that won't put your account at risk, talk to our team or read our creator sampling guide.
