How to Avoid FTC Violations: Fine Print, SMS Messages, and Review Gating Practices
In today's digital world, online reviews are a cornerstone of a business's reputation. As businesses strive to collect and manage customer feedback, many have turned to SMS messages, landing pages, and other direct outreach methods to request reviews. However, the Federal Trade Commission (FTC) has implemented strict guidelines that businesses must follow to ensure transparency and fairness when soliciting reviews. Violating these guidelines, even unintentionally, can result in hefty penalties and damaged trust with customers.
This article breaks down key issues surrounding fine print, deceptive SMS messages, and review gating, along with actionable advice on how businesses can stay compliant.
Understanding the FTC Regulations on Customer Reviews
The FTC enforces rules to protect consumers from misleading or deceptive business practices, including:
The Consumer Review Fairness Act (CRFA): Protects consumers' rights to leave honest reviews, whether positive or negative.
The FTC Review and Testimonial Rules: Prohibit businesses from manipulating or filtering reviews to paint an inaccurate or overly positive picture.
Under these regulations, businesses cannot:
Suppress or hide negative reviews.
Use "review gating" to funnel satisfied customers to public platforms while diverting unsatisfied customers elsewhere.
Use fine print, hidden links, or additional barriers to discourage negative feedback from appearing publicly.
The goal is simple: All customers must have equal opportunity to leave honest, public reviews.
Deceptive SMS Messages: A Common Compliance Pitfall
Many businesses use SMS messages to request customer ratings or reviews. While SMS is an effective and convenient method, it can easily lead to FTC violations when used improperly. Here are some common issues:
1. Asking for Ratings and Filtering Negative Feedback
Example:
A business sends an SMS asking customers to rate their experience on a scale of 1 to 5.
Customers who respond with a 4 or 5 are given a direct link to a public review site (e.g., Google or Yelp).
Customers who respond with a 1, 2, or 3 are redirected to a private feedback form.
Why This Is Non-Compliant: This practice, known as review gating, selectively promotes positive reviews while hiding negative ones. It manipulates the public perception of the business, which is considered deceptive by the FTC.
2. Fine Print and Hidden Links
Some businesses bury public review links in fine print, small fonts, or obscure sections of a form, especially for dissatisfied customers. While the link may technically exist, the barrier created makes it unlikely that unhappy customers will leave public reviews.
Why This Is Non-Compliant: The FTC requires businesses to provide clear, conspicuous, and equal access to review platforms. If a public review link is hidden or downplayed, it violates transparency guidelines.
How to Make SMS Review Requests FTC-Compliant
To avoid deceptive practices and comply with FTC regulations, businesses must:
1. Treat All Feedback Equally
Every customer, regardless of their rating or satisfaction level, must have equal access to leave a public review.
Compliant Example:
"Thank you for visiting! We'd love your feedback. Leave us a review here: [Public Review Link]. If there's anything we can improve, let us know: [Private Feedback Link]."
This message provides a direct public review link while also giving customers the option to provide private feedback.
2. Avoid Review Gating
Do not filter customers based on their satisfaction level. All feedback should be treated the same, whether it is positive or negative.
3. Make Links Clear and Conspicuous
Public review links must be easy to see, read, and access. Avoid small fonts, fine print, or placing the link in a hard-to-find location.
Tip: Place the public review link prominently in both SMS messages and follow-up communications.
Landing Pages and Review Funnels: What to Watch For
Businesses often use landing pages to collect feedback before encouraging customers to post reviews. While this approach can be effective, it must adhere to FTC rules:
Do Not Gate Reviews: A landing page cannot filter customers based on their rating or experience. Public review links must be equally accessible to everyone.
Clear Instructions: If you use a two-step process (e.g., feedback form first, then review link), make sure all customers are clearly guided to the public review link, regardless of their responses.
Transparency: Be upfront about the purpose of the feedback request and where the review will be shared.
Compliant Landing Page Example:
The page thanks customers for their feedback.
It includes a prominent link to a public review platform.
It also provides a form for private feedback, but it does not hide or discourage public reviews.
Non-Compliant Landing Page Example:
The page collects a customer rating first.
Customers giving a 4 or 5 are sent directly to a public review platform.
Customers giving a 1, 2, or 3 are shown a private feedback form with no clearly visible link to leave a public review.
The compliant example ensures that all customers, regardless of their rating, have equal access to leave a public review. The non-compliant example filters feedback, creating an unfair advantage by discouraging negative reviews.
Why Compliance Matters
Staying compliant with FTC guidelines isn't just about avoiding penalties; it’s also about building trust with your customers. A transparent review process shows that your business values all feedback, both positive and negative. This authenticity resonates with customers and can enhance your reputation in the long run.
Non-Compliance Risks:
FTC Penalties: Fines for deceptive practices can reach up to $51,744 per violation.
Reputation Damage: Getting caught filtering reviews can erode customer trust and tarnish your online reputation.
Platform Bans: Review platforms like Google and Yelp have their own policies and may penalize businesses that manipulate reviews.
Final Thoughts
Soliciting reviews is a powerful tool for businesses, but it must be done ethically and transparently. By avoiding review gating, eliminating deceptive practices, and providing clear, equal access for all customers to leave public reviews, businesses can stay compliant with FTC regulations and foster trust with their audience.
If you're unsure about your current review process, now is the time to evaluate and ensure it meets FTC standards. A fair and honest approach to feedback isn't just the law—it's good business. If you would like assistance, or a second-opinion, about the customer review collection process you currently use, please reach out to Social Proof Solutions at [email protected] to request an audit of your review process.
