Aston Watson
What the FTC fake reviews rule says
The FTC fake reviews rule bans businesses from writing, buying or selling fake reviews and testimonials, paying for reviews that must be positive or negative, hiding insider reviews, running fake "independent" review sites, suppressing honest reviews and buying fake followers or views. Courts can impose civil penalties for knowing violations.
The Federal Trade Commission voted 5 to 0 to approve the final rule on 14 August 2024, according to the FTC's announcement of the final rule. It was published in the Federal Register on 22 August 2024 and went into effect on 21 October 2024.
The rule matters because it gives the FTC a new tool. Before it, the agency could act against deceptive reviews under the FTC Act, but the press release says the rule now lets it "seek civil penalties against knowing violators." That changes the cost of a fake review from a reputational risk into a possible legal bill.
What the FTC rule on fake reviews bans
The FTC rule on fake reviews has six working sections, each aimed at one kind of deception. The full text of 16 CFR Part 465 is short and readable, but here is what each part covers in plain terms.
Fake or false reviews and testimonials (465.2)
A business may not write, create, sell, buy or spread reviews or testimonials that misrepresent who the reviewer is or whether they had a real experience with the product. The FTC's announcement names "AI-generated fake reviews" as an example, alongside reviews from people who do not exist. The ban applies when the business knew or should have known the review was fake.
Buying positive or negative reviews (465.4)
A business may not offer money or any other incentive in return for a review that expresses a particular sentiment, positive or negative. The condition can be stated outright or only implied. Paying for five-star reviews is banned even if the reviewer is asked to disclose the payment.
Insider reviews without disclosure (465.5)
Reviews by officers, managers, employees or agents, or by their relatives, must clearly disclose that connection. Officers and managers also may not ask staff or relatives for reviews without making sure the connection is disclosed.
Company-controlled review sites (465.6)
A business may not claim that a website or organisation it controls offers independent reviews of a category that includes its own products. One example would be a "best tools" site secretly run by one of the vendors it ranks.
Review suppression (465.7)
A business may not use groundless legal threats, physical threats, intimidation or false public accusations to stop or remove a review. It also may not present the reviews it shows as all or most of its reviews when negative ones have been hidden because of their rating.
Fake social media indicators (465.8)
Nobody may sell or buy fake followers, views or other indicators of influence, such as bot accounts, when they knew or should have known they were fake and used them for a commercial purpose. This covers the social proof around reviews as well as the reviews themselves.
Real reviews from real users keep a business clear of every section above, and they are the only kind we work with. That is why each of our software review services, from G2 review generation to campaigns to get SoftwareSuggest reviews and our campaigns for real Trustpilot reviews, follows one model: reviewers are never paid and choose their own rating.
Are fake reviews illegal? Penalties and enforcement
Are fake reviews illegal? Under this rule, yes: writing, buying or selling them is unlawful for businesses, and courts can impose civil penalties for knowing violations, according to the FTC's questions and answers on the rule. The FTC can also still act under the wider FTC Act, which bans unfair or deceptive practices.
The rule does not give individuals a private right of action, so only enforcement authorities can bring a case under it. Ordinary consumers are also not liable for what they say or do not say in their reviews. The rule is aimed at the businesses, agencies, review brokers and reputation firms that create or buy fake content.
Warning letters in December 2025
The first public enforcement step came on 22 December 2025, when the FTC's December 2025 warning letter announcement said staff had written to 10 companies about possible violations. The letters followed consumer complaints and information the companies had provided, and the FTC did not name the recipients. The FTC stressed that the letters "are not formal determinations" that anyone broke the rule.
The same press release, dated 22 December 2025, said the letters warn that violations can lead to a federal lawsuit and to "civil penalties of up to $53,088 per violation" under the rule. Check the FTC's site for the current figure before you rely on it, because this is the amount stated on that date.
Buyers want this enforcement too. BrightLocal's 2026 Local Consumer Review Survey found that 97% of consumers think businesses should face punishment for fake reviews, and 37% think businesses should face fines. Reviews only work as social proof while buyers trust them, which is a big part of why are online reviews important in the first place.
Who the rule covers and who is exempt
The rule applies to businesses, and the FTC reads that widely. Agencies, PR firms, review brokers and reputation management companies are not exempt, and anyone who creates or sells fake reviews can be liable. Here is how the main groups are treated:
| Who | Position under the rule |
|---|---|
| A business that buys or writes fake reviews | Covered when it knew or should have known they were fake |
| Agencies, brokers and review sellers | Covered, with no exemption for agencies or brokers |
| Ordinary consumers who write reviews | Not liable for what they say or do not say |
| A business that only hosts reviews | Exempt from 465.2 for hosting, even while asking for and averaging reviews |
| A business that uses reviews in its ads | The reviews become testimonials, so the hosting exemption no longer applies |
The phrase "knew or should have known" does a lot of work. The FTC's Q&A says there is no general duty to check every review, but red flags count. Its examples include reviews that appear so quickly after purchase that they cannot reflect real use, a sudden burst of reviews in a short period and reviews that describe the wrong product.
The Consumer Review Fairness Act protects honest reviewers
The Consumer Review Fairness Act is a separate federal law that works alongside the rule. It voids contract terms that stop customers from reviewing a business, that charge a penalty or fee for a review, or that make customers hand over the intellectual property rights in their review. The FTC's Consumer Review Fairness Act guide for businesses says it applies to standard form contracts, such as online terms and conditions.
For a SaaS company, the practical check is your terms of service. A clause that bans negative reviews or fines customers for posting one is void, and offering it can lead to action by the FTC or state attorneys general. The law does not cover employment contracts or agreements with independent contractors.
You can still remove some reviews on your own site. The FTC lists reviews that contain confidential or private information, are abusive or obscene, are unrelated to your product or are clearly false or misleading. It also warns that an opinion you disagree with is unlikely to count as clearly false.
What the FTC fake reviews rule means for SaaS teams asking for reviews
The good news for SaaS teams is that asking for reviews is still allowed. The FTC's Q&A says "the rule does not prohibit giving incentives for reviews," as long as the reward never depends, openly or by hint, on the review being positive or negative. Generalized requests sent to every customer are also outside the insider review section, even when an incentive is offered.
The grey areas sit in the wider FTC Act. Asking only the customers you expect to be happy is not banned by the rule itself, but the FTC says the practice "could violate the FTC Act." An undisclosed incentive could do the same, and so could insider reviews that materially lift your average star rating, even when they are labelled.
In practice, a safe request process looks like this:
- Ask every customer at a fixed point they all reach, such as day 30, day 90 or the account anniversary.
- Keep the request neutral, with one link and no mention of a rating.
- If you offer a reward, give the same reward for any review and disclose it.
- Keep staff, founders and their relatives out of your review profiles, or have them disclose the connection clearly.
- Never pay to remove or change a truthful negative review.
Review platforms add their own rules on top of the law, and some are stricter. Our guide to incentivized reviews covers what each site allows on rewards, and our guide on how to ask customers for reviews has scripts that pass the strictest rule.
Want to see the rules we hold every campaign to?
Read the RelikReview review policy, which sets out the rules every campaign follows and why no one is paid for a rating.
How RelikReview runs review campaigns
RelikReview runs review campaigns on G2, Trustpilot, Capterra, SourceForge, SoftwareSuggest and HubSpot. Our software review services use verified users or their own customers, and you get the plan in writing first.
- No paid ratingsReviewers are never paid and choose their own rating.
- Every platform's rulesNo gating, and no rewards tied to ratings.
- Steady pacingNew reviews arrive monthly, with no sudden bursts.
The FTC fake reviews rule, in short
The FTC fake reviews rule turns fake reviews, bought sentiment, hidden insider reviews and review suppression into practices that can carry civil penalties. Asking for reviews is still fine, and so is a reward offered to every reviewer, as long as the rating is left entirely to the customer.
The simplest way to stay on the right side of the rule is to collect real reviews from real users, at a steady pace, with no strings attached. If you would rather hand that work to a team that runs it every day, talk to the RelikReview team about a campaign plan.
FAQs about fake reviews and the law
Are fake reviews illegal under the FTC rule?
Yes, fake reviews are illegal for businesses under the FTC's rule on consumer reviews, which took effect on 21 October 2024. Writing, buying or selling reviews from people who do not exist or never used the product is banned, and courts can impose civil penalties for knowing violations. The FTC Act also bans deceptive reviews.
When did the FTC rule on fake reviews take effect?
The FTC rule on fake reviews took effect on 21 October 2024. The Commission approved it by a 5 to 0 vote on 14 August 2024, and it was published in the Federal Register on 22 August 2024. It is codified as 16 CFR Part 465, the Rule on the Use of Consumer Reviews and Testimonials.
Can a company offer incentives for reviews?
Yes, a company can offer incentives for reviews under the FTC's rule, provided the incentive is never conditioned, openly or by hint, on a positive or negative review. The FTC also says undisclosed incentives could violate the FTC Act. Review sites also set their own rules on rewards, and some are stricter than the law.
Are AI-generated reviews banned by the FTC?
Yes, AI-generated fake reviews are banned. The FTC's announcement of the final rule gives them as an example of reviews that misrepresent that they come from someone who does not exist. The rule applies when a business knew or should have known the reviews were fake, whether a person or a tool wrote them.
What does the Consumer Review Fairness Act do?
The Consumer Review Fairness Act voids form contract terms that stop customers from posting honest reviews, charge them a fee for reviewing or take the intellectual property rights in their reviews. The FTC and state attorneys general enforce it. It still lets businesses remove reviews that are abusive, unrelated, confidential or clearly false.
Is it illegal to ask only happy customers for reviews?
No, the FTC's rule does not specifically ban asking only happy customers for reviews. However, the FTC's own Q&A warns that this practice could violate the FTC Act, and review sites can set stricter rules of their own. The safer route is to ask every customer the same way at a fixed point.
