FTC Warns Businesses to Comply with the FTC Consumer Review Rule

Consumers often rely on reviews to help them choose between everything from home repair companies to apartments to lawyers.  When those reviews reflect honest feedback from real people who have actually used a product or service, the feedback can be invaluable.  Reviews can also encourage people to take a chance on an unknown company or product.

According to the FTC lawyers, “[w]hen companies try to game the review system – by using fake reviews or providing money or incentives for only positive reviews – they distort the marketplace and harm consumers relying on reviews to make purchasing decisions.”  The FTC also believes that they damage honest competitors who work hard to comply with the law.

On December 22, 2025, the FTC announced that it has sent warning letters to alert a number of companies of potential violations of the Rule on the Use of Consumer Reviews and Testimonials (the “Consumer Review Rule”).  The letters warn of potential violations of the agency’s Rule, which prohibits certain deceptive or unfair conduct related to the use of product reviews in advertising and marketing.

These letters confirm, for example, that companies using fake reviews or providing incentives for 5-star reviews misrepresent consumer experiences and opinions – and may be subject to FTC enforcement actions and civil penalties.  Civil penalties that, at up to $53,088 per violation, can quickly add up.  The warning letters, which were based on consumer complaints and information provided by the companies, are not formal determinations that the recipients have violated the Consumer Review Rule.

The FTC monitors the marketplace and initiates investigations and enforcement actions against companies using deceptive and unfair business practices.  The FTC’s letters remind companies that creating, buying, or posting fake reviews, or giving incentives for only positive reviews, may trigger enforcement actions and fines.  An experienced FTC defense lawyer can assist with maximizing marketing outreach while minimizing liability exposure.

“Fake or false consumer reviews are detrimental to consumers’ ability to make accurate and informed choices about the products they are buying – something of particular importance during the holiday season,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “As consumers increasingly depend on online reviews, the FTC is committed to ensuring companies comply with this Rule.”

Here are some things that the FTC cautions consumers about when considering reviews:

• Look at a variety of sources and pay attention to whether a website or its reviews are independent or sponsored.
• Check how recent the reviews are and watch for a burst of reviews over a short period of time. That can sometimes mean the reviews are fake.
• Report fake reviews to the website or platform where they appear — like Google, Amazon, or Walmart, among others. The FTC even informs consumers about how to report suspicious online reviews across some popular websites.

The Rule prohibits reviews and testimonials that misrepresent whether a reviewer’s experience was positive or negative, or whether the reviewer used the product or service at all.  It also prohibits businesses from conditioning compensation or other incentives on reviewers expressing a particular sentiment, either positive or negative, or from failing to disclose when reviews are written by company insiders or their immediate relatives.  The Rule contains additional provisions relating to company-controlled review websites, suppressing certain reviews, and misusing indicators of social media influence like the number of followers or views.

To protect your business’s reputation and bottom line, consult with an experienced FTC Consumer Review Rule lawyer to review the Consumer Review Rule thoroughly and, if necessary, revise your practices to ensure that you are complying with the Consumer Review Rule’s requirements.

Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.