Understanding the FTC Ruling on Customer Reviews

In the evolving digital marketing landscape, transparency and compliance are critical. The Federal Trade Commission’s (FTC) Final Rule on the Use of Consumer Reviews and Testimonials establishes clear guidelines to prevent deceptive practices. Below, we summarize the rule's key points and provide direct access to the official FTC document to help you stay informed and compliant.

What Is the FTC’s Final Rule on Consumer Reviews?

The FTC’s Final Rule addresses unfair or deceptive practices related to consumer reviews and testimonials. The goal is to ensure authenticity, transparency, and fairness in how reviews are solicited, presented, and managed. These regulations prohibit:

  • The creation or purchase of fake reviews.

  • Review suppression or manipulation to mislead consumers.

  • Incentivized reviews without clear disclosures.

  • Misuse of insider or family reviews without disclosure of relationships.

Why It Matters: Consumer reviews play a significant role in influencing buying decisions. The FTC’s rule protects consumers from deception and encourages businesses to foster genuine trust through ethical practices.

Prohibited Practices in Customer Review Management

To ensure compliance, the FTC explicitly prohibits the following:

Fake Reviews:

  • Businesses are prohibited from creating, purchasing, or selling fake reviews.

  • Includes reviews from non-existent individuals or those who haven’t used the product or service.

Review Hijacking:

  • Repurposing reviews from one product to another in a misleading way is forbidden.

Undisclosed Incentives:

  • Offering compensation for reviews without clear and conspicuous disclosures is prohibited.


Insider Reviews:

  • Reviews by employees, family members, or affiliates must disclose material connections.


Suppression of Negative Reviews:

  • Businesses cannot selectively remove or hide negative reviews to mislead consumers.


Review Gating:

  • Screening customers to solicit positive feedback while diverting negative feedback away from public platforms is prohibited.

  • Businesses must allow all customers to share their honest experiences without filtering based on sentiment.


Cherry-Picking:

  • Selectively soliciting reviews only from customers likely to leave positive feedback is not allowed.

  • All customers should be equally encouraged to provide reviews, regardless of the expected tone or sentiment.

Key Guidelines for Businesses to Ensure Compliance

To adhere to the FTC’s guidelines, businesses should implement the following best practices:

  • Encourage Authentic Reviews: Solicit feedback from genuine customers without influencing the tone or content of their reviews.

  • Disclose Relationships: Clearly disclose any material connections (e.g., employees, affiliates, or family members).

  • Monitor and Audit Reviews: Use tools and processes to detect fake reviews and ensure authenticity.

  • Avoid Incentivizing Positive Reviews: Offer incentives that do not require or imply positive feedback as a condition.

  • Provide Transparency: Represent all reviews fairly and refrain from selective suppression of negative feedback.

The Importance of Transparency in Testimonials

Testimonials often serve as a powerful marketing tool. However, the FTC’s guidelines emphasize that:

Testimonials must reflect genuine experiences.

Material connections between the testimonial and the business must be disclosed.

Misleading endorsements, such as fake celebrity testimonials, are strictly prohibited.


Pro Tip: Integrate disclaimers and disclosures prominently in your marketing materials to align with FTC compliance standards.

How This Ruling Impacts Your Marketing Strategies

The FTC’s Final Rule reshapes the way businesses manage customer reviews and testimonials. Here are key takeaways for marketing strategies:

Build Consumer Trust: Ethical review practices enhance credibility and improve customer loyalty.

Improve Local SEO: Authentic and transparent reviews align with search engine algorithms, boosting your visibility.


Avoid Legal Risks: Complying with FTC guidelines minimizes the risk of penalties and reputational damage.

Access the Full FTC Ruling

For detailed information, read the complete FTC ruling on consumer reviews and testimonials directly from the FTC’s official site:

Need Help Staying Compliant?

Need assistance navigating the FTC’s new guidelines on customer reviews? Social Proof Solutions is here to help. Contact us for expert review management services that ensure transparency, compliance, and trust.

Contact Us Today to learn how we can help you build trust and grow your business responsibly.

Your success starts with ethical, transparent marketing.

Grow Your Business By Growing Your Online Reputation

More Reviews, More Traffic, More Conversions

A Lead Monkey Marketing Brand

734-361-2333

1630 Waverly Street, Unit 2, Trenton MI 48183

© 2024 Lead Monkey Marketing LLC, DBA Social Proof Solutions | All Rights Reserved