FTC Fake Reviews Rule: What the Consumer Reviews Rule Requires and How Sellers Should Audit

If your brand collects, displays, or advertises with customer reviews, one federal rule now governs how you do it. The FTC’s Rule on the Use of Consumer Reviews and Testimonials (16 CFR Part 465) — usually searched as the FTC fake reviews rule or the FTC consumer reviews rule — took effect on October 21, 2024. It makes fake, bought, or suppressed reviews a rule violation the FTC can pursue with civil penalties of up to $53,088 per violation (the 2026 level, unchanged from 2025). On December 22, 2025, FTC staff sent warning letters to 10 companies about potential violations, and the agency continued to work the rule in 2026. This article explains what the rule bans, what it does not require, and gives ecommerce sellers and DTC brands a concrete review audit they can run before the FTC does.

Sources for this review were opened on 2026-10-14. It is a plain-language reading of primary sources, not legal advice, and it does not describe state law.

What the FTC Consumer Review Rule is — and what it is not

The rule is a federal trade regulation rule, not a platform policy. It applies to a “business” that sells products or services, and it reaches the people who act for that business: advertising agencies, public-relations firms, review brokers, and reputation-management companies can be liable too. Ordinary consumers are not liable for what they write in a review; the provisions that govern what a review says apply to businesses, not to the shopper who left it.

Two distinctions matter when you research this topic:

• Reviews vs. testimonials. A consumer review is an evaluation published on a page or platform dedicated to displaying such evaluations. A testimonial is an advertising or promotional message. Reviews that a business features in its own advertising become testimonials, and the rule’s hosting exemption stops applying to them.
• This rule vs. endorsement disclosure. The Consumer Review Rule’s only disclosure requirement concerns company insiders. Whether an influencer must disclose a brand relationship is governed by the FTC’s Endorsement Guides and the FTC Act — a related but separate topic we cover in our FTC influencer disclosure guide.

There is no private right of action under the rule; only the FTC enforces it. The FTC Act still applies on its own, so conduct that falls outside the rule’s text can still be found deceptive or unfair.

The six prohibited practices, in one table

The rule is organized into sections. Here is what each one bans, and how it shows up for a seller.

Incentives are allowed — conditional sentiment is not (§ 465.4)

The FTC is explicit that the rule does not forbid giving customers something in exchange for a review. What it forbids is tying the reward to a particular sentiment, and the condition can be implied, not just written. The FTC’s own examples of an implied condition are “Tell us how much you loved your visit … and get a $5 coupon” and “Tell your friends about all the fun you had … for a chance to win prizes.” Offering a reward simply for leaving a review — with no sentiment attached — is not a violation of this section.

Three points sellers get wrong:

• Asking reviewers to add an incentive disclosure does not save a 5-star offer. The FTC says paying for 5-star reviews violates § 465.4 even if a disclosure is added.
• The section applies to reviews on your own site and on third-party platforms, so a reward program aimed at Amazon or Google reviews is covered.
• Paying a customer to remove or change a truthful negative review is not banned by this section, but the FTC warns it can be an unfair practice under the FTC Act because it distorts what shoppers see.

Separately, if you give incentives at all, failing to disclose them can violate the FTC Act and the Endorsement Guides. That is a different rule from this one, but it is the same review program.

Insider reviews need a clear and conspicuous disclosure (§ 465.5)

Under § 465.5, an officer or manager who writes a review or testimonial about their own business must disclose the material relationship clearly and conspicuously. The rule defines “clear and conspicuous” as being unavoidable: a shopper must not have to click a link or hover to see it. For this rule, the FTC says a disclosure in the first line of a review would count.

Two guardrails keep normal sellers out of trouble:

• Generalized solicitations are exempt. If you email all purchasers asking for reviews and one happens to be an employee who posts without disclosing, that outcome is exempt when the solicitation was general.
• Mere hosting is exempt. If you only host reviews you did not write or buy, you are not liable under § 465.2 for their content, and the FTC does not require you to investigate whether each one is real.

But consider red flags: a review from someone whose name matches an employee, or a testimonial that arrives right after you asked a person to provide one. If a disclosure is needed, a hashtag like “#Ad” may work in a text post but can be too easy to miss in a video, so placement matters.

Responding to a bad review without suppressing it (§ 465.7)

You are allowed to reply publicly to a negative review, and you may ask satisfied customers to update theirs. The line is how you try to remove or suppress:

• No unfounded or groundless legal threats — a threat is “groundless” when the claim is unwarranted by existing law or rests on facts with no evidentiary support. A threat with a legitimate basis is fine.
• No physical threats, intimidation, or false public accusations. The FTC says intimidation is not limited to physical threats; it can include abusive communications, stalking, or harassment used to force someone to act.
• Do not filter by rating or sentiment while implying you show everything. Organizing or sorting reviews is not suppression, and a default rating order is not covered by the rule — but hiding negatives by sentiment while presenting the result as complete is.

What the rule does not require

• No duty to investigate every hosted review. If you merely host reviews, you are not required to screen them or contact reviewers.
• No ban on asking for reviews. Generalized requests to purchasers are specifically exempt.
• No outright ban on incentives. Only incentives conditioned on sentiment are banned.
• No specific ban on “review gating” — asking only customers you expect to be happy. But the FTC notes that practice can still violate the FTC Act and the Endorsement Guides, so general solicitation is the safer posture.
• No private lawsuits. The rule gives consumers no right to sue; the FTC enforces it.
• No override of platform rules. Amazon, Etsy, and TikTok Shop enforce their own review policies in parallel and can remove content or act on an account on their own.

A review-audit checklist for sellers

• Stop creating or buying reviews. Never let your team, an agency, or a broker write a review for your own product.
• Audit every incentive. Read the exact wording in post-purchase emails, package inserts, SMS, loyalty programs, and review software, and remove anything that implies a positive (or negative) review to earn the reward.
• Disclose incentives where required. The reward itself may be allowed, but an undisclosed incentive can breach the FTC Act and the Endorsement Guides.
• Handle insider reviews. If officers, managers, employees, agents, or their immediate relatives review you, the relationship must be clear and conspicuous — unavoidable, with no click or hover required.
• Keep “independent” claims honest. If you control the site, seal, or award, do not call it independent; and note the FTC’s position that a disclaimer does not cure an express claim of independence.
• Respond without suppressing. Public replies are fine; baseless legal threats, false accusations, and intimidation are not.
• Watch how you filter. Sorting is fine; suppressing by rating or sentiment while implying completeness is not.
• Do not buy followers or views. § 465.8 bans it when you knew or should have known the indicators were fake.
• Vet testimonials used in ads. Featured reviews become testimonials; make sure they reflect real, documented experiences, because the hosting exemption no longer protects them.
• Keep records. Retain how you collect and display reviews, and the basis for any testimonial you feature.

Federal rule vs. platform rules — and where a checker fits

The FTC’s rule is the federal-law layer; the platforms are a separate layer with their own review policies and their own consequences. That split matters for what a tool can and cannot do. A content-compliance checker can help you review the English wording of incentive copy, testimonial text, and review responses before you publish — for example, to catch phrasing that conditions a reward on sentiment. It cannot confirm legal compliance, cannot guarantee a platform outcome, and does not replace legal review or your own records. For ecommerce listings and review-based marketing, see our ecommerce compliance solutions; if you put reviews or testimonials into ad creative, run that copy through the ad compliance checker. For the FTC’s broader origin and disclosure rules that often sit alongside reviews, see our Made in USA claims review.

Frequently asked questions

Is offering a discount or gift in exchange for a review illegal?

Not under this rule, as long as the offer is not expressly or implicitly conditioned on the review being positive (or negative). Conditioning a reward on a 5-star review violates § 465.4 even if you ask the reviewer to disclose the incentive. Undisclosed incentives can separately violate the FTC Act and the Endorsement Guides.

Can I ask only happy customers to leave reviews?

The rule does not specifically prohibit it, but the FTC warns that selective solicitation can violate the FTC Act and the Endorsement Guides. Solicit reviews from all purchasers rather than hand-picking favorable ones.

Can I respond to a negative review, or ask a customer to change it?

Yes. You can reply publicly, and you can ask satisfied customers to update their reviews. What you cannot do is use false accusations, unfounded legal threats, physical threats, or intimidation to remove a review. Paying to remove truthful negative reviews is not barred by this section, but the FTC says it can be unfair under the FTC Act.

Does the rule apply to reviews on Amazon, Etsy, or TikTok Shop?

Yes. The rule governs your conduct as a business regardless of where the reviews appear, and it reaches reviews on your own site and on third-party platforms. Those platforms also enforce their own review rules, so a practice can breach both at once.

What are the penalties?

The FTC can seek civil penalties of up to $53,088 per violation (the 2026 level, unchanged from 2025) and can bring a federal lawsuit. There is no private right of action under the rule, but the FTC Act applies independently. It is better to fix the program than to rely on a warning letter.

Reviewed against primary sources on 2026-10-14: the text of 16 CFR Part 465, the FTC’s Consumer Reviews and Testimonials Rule Q&A, the FTC’s final-rule announcement (August 14, 2024), and the FTC’s warning-letter materials (December 22, 2025). Rules and guidance change; re-check the original before you act on it.