The FTC fake review rule: what local businesses must know

The FTC fake review rule is a federal regulation that makes fake reviews, paid-for praise and bullying of reviewers illegal for any business that sells products or services, down to a one-person cleaning company. It has been in force since October 21, 2024, it carries civil penalties, and the FTC has started enforcing it.

This guide goes through the rule section by section in plain English, ties each part to situations local owners run into, shows where Google and Yelp go further, and ends with do and don't lists for a plumber, a dentist and a salon. For the practical side of asking, see how to ask customers for reviews.

This is general information about US federal rules as of October 14, 2026, not legal advice. State laws add their own rules, so take anything that matters to a lawyer.

What is the FTC fake review rule?

The FTC fake review rule, officially the Rule on the Use of Consumer Reviews and Testimonials (16 CFR Part 465), is a federal regulation that bans fake reviews and testimonials, rewards tied to a review's sentiment, undisclosed insider reviews, fake "independent" review sites, suppressing reviews through threats, and fake social media followers. It took effect on October 21, 2024.

You'll also see it called the FTC consumer review rule. The FTC announced it in August 2024 and explains it in a Q&A for businesses.

The definitions in section 465.1 set the reach. Reviews and star ratings on sites like Google and Yelp count, and so do ratings on a page of your own site that collects them. Testimonials count too, like the customer quotes on your flyers. A "business" is any individual, partnership or company that sells products or services, with no size exemption.

1. August 14, 2024

   The FTC announces the final rule after a unanimous 5-0 vote.

2. August 22, 2024

   The rule is published in the Federal Register (89 FR 68077).

3. October 21, 2024

   The rule takes effect.

4. December 22, 2025

   FTC staff send warning letters to 10 companies about possible violations.

5. May 11, 2026

   The FTC and Illinois announce a civil penalty complaint over fake home repair listings and fake reviews.

Are fake reviews illegal? What section 465.2 bans

Yes. Under section 465.2, a business may not write, create or sell a review or testimonial that misrepresents whether the reviewer exists, whether they actually used the product or service, or what their experience was. It also may not buy such reviews, or get them from its own people or their close relatives, when it knew or should have known they were false.

Each part of the section matches a shortcut owners are tempted by. These are made-up examples:

1. Writing them yourself. A new bakery's owner opens three accounts under invented names and posts five-star reviews "to get the ball rolling."
2. Buying them. A moving company pays a "review service" for forty five-star reviews from accounts that never hired it.
3. Getting them from insiders. A restaurant owner asks her sister, who lives two states away and has never eaten there, to post a glowing review. The rule covers officers, managers, employees and agents plus their "immediate relatives": a spouse, parent, child or sibling.

It works in both directions. Fake one-star reviews of the pizzeria across the street misrepresent the reviewer's experience just as fake praise does.

AI-written reviews

The FTC's announcement says the rule addresses "AI-generated fake reviews." Twenty reviews written by a chatbot in different voices are reviews from people who don't exist. Google's policy for reviews also prohibits "Content that is not based on a real experience or does not accurately represent the location or product in question." A milder version, drafting a review for a customer to post, still puts your words in their mouth. Let customers write their own.

Testimonials on your website and in ads

The FTC's Q&A says putting testimonials on your own website is dissemination, so a fake or false one can make you liable. Use real customer comments, note where each came from, and don't polish a quote into something the customer didn't say. Using customer reviews in marketing covers quoting customers fairly.

The two exemptions

Paragraph (d) says the buying and insider rules don't apply to reviews that came from "generalized solicitations to purchasers," or to reviews that appear because a business merely hosts them. The Q&A adds that a business hosting reviews has no duty to screen them.

Paying for reviews: what section 465.4 bans

Section 465.4 bans giving compensation or other incentives "in exchange for, or conditioned expressly or by implication on," reviews that express a particular sentiment, positive or negative. A discount for five-star reviews is banned, and so is any reward that hints a positive review is expected.

The rule's idea of value is wide. When it defines buying a review, section 465.1 lists "money, gift certificates, products, services, discounts, coupons, contest entries, or another review." By that list, two shops in a networking group trading five-star reviews are swapping things of value for reviews.

"By implication" catches wording that never mentions stars. The FTC's own example of a violation is "Tell us how much you loved your visit to John's Steakhouse and get a $5 coupon."

Where the FTC is looser than Google and Yelp

The FTC's Q&A says the rule "does not prohibit giving incentives for reviews, as long as there isn't an express or implied requirement" that the reviews express a particular sentiment. It adds that failing to disclose incentives could violate the FTC Act.

The review sites don't allow even that. Google's policy says "We do not allow merchants to" offer incentives "in exchange for posting any review," and the same bullet covers rewards for revising or removing a negative review. Yelp's owner guidance, Don't Ask for Reviews, tells owners not to "offer freebies, discounts, or payment in exchange for reviews." The working rule for a local business: offer nothing for a review. Can you offer incentives for Google reviews? goes through raffles, staff bonuses and loyalty points.

Reviews from staff, family and other insiders: section 465.5

Owners, executives and managers may not review their own business without clearly disclosing the connection. A manager also may not ask employees or close relatives for reviews, or tell employees to ask their relatives, when that produces undisclosed reviews and the manager encouraged silence, didn't tell them to disclose, or knew and did nothing.

That's section 465.5 in short. Online, the disclosure must be unavoidable: section 465.1 says it doesn't count "if a consumer must take any action, such as clicking on a hyperlink or hovering over an icon, to see it."

The FTC's Q&A says an owner can ask family members for reviews if they "clearly and conspicuously disclose their relationship to your business." Google and Yelp don't make that exception. Google's policy prohibits "Content that is based on a conflict of interest" and names "current or former employment" as an example. Yelp's content guidelines list conflicts of interest too: "you shouldn't write reviews of your own business or employer, your friends' or relatives' business," among others. So staff and family don't review the business, disclosed or not. Can employees leave Google reviews? covers former staff and contractors. A short written policy settles it.

Template: staff review policy (one page)

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[Business name] review policy for staff

1. Please don't post reviews of [Business name] on any site, and ask your spouse, parents, children and siblings not to either. Review sites treat these as conflicts of interest.
2. Don't ask friends or family to review us.
3. Never offer a customer anything for a review, and never suggest a rating.
4. Ask every customer the same way, using [the card at the counter / the text we send after each visit].
5. If a review looks like it came from staff, a relative or someone who was never a customer, tell [manager name]. Don't reply to it yourself.
6. Never reply to a review with threats, insults or claims about the reviewer. Send anything upsetting to [manager name].

Questions: [manager name], [phone or email]

The exemption for asking every customer

Sections 465.2 and 465.5 both exempt "generalized solicitations to purchasers." The FTC's Q&A describes a business that emails all its recent customers asking for reviews, some of whom are employees who post without disclosing it. The answer: "Your company didn't violate this section of the rule."

That's one legal reason to ask everyone the same way. The FTC's guide for marketers adds "Don't ask for reviews only from customers you think will leave positive ones," and Google prohibits trying to "selectively solicit positive reviews from customers."

1. 1

   Is it going to every customer?

   Same request, same point in the visit, whatever you expect them to say.
2. 2

   Is anything offered?

   No discount, prize, freebie or entry. Google and Yelp ban all of them.
3. 3

   Does it hint at a rating?

   No stars, no 'how much you loved', no 'if you were happy'.
4. 4

   Is the reviewer a real customer?

   No staff, no family, no one who never used the service.

1. 1

   Hi Jordan, it's Lakeside Veterinary Clinic.

   Same opening for everyone

   Names the business. Every client gets the same message after every visit, with only the names changing.

2. 2

   Thanks for bringing Biscuit in today.

   Tied to a real visit

   Goes only to people who used the service, so the reviewer and the experience are real.

3. 3

   Would you leave an honest review of your visit?

   A neutral ask

   No stars, no 'loved', no reward. Section 465.4 covers implied conditions too.

4. 4

   [review link]

   One link

   The same link for every client.

5. 5

   Reply STOP to opt out.

   How to stop

   Texting has its own rules on consent and opt-outs.

For texts, texting customers for reviews covers consent, STOP replies and 10DLC registration. Two requests to copy:

Template: review request text for every customer

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Hi [First name], it's [Business name]. Thanks for coming in today. If you have a minute, we'd appreciate an honest review of your visit: [review link] Reply STOP to opt out.

Template: review request email for every customer

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To

[Customer email]

Subject

How was your visit to [Business name]?

Hi [First name],

Thank you for choosing [Business name]. We ask every customer for a review, and we'd value yours, good or bad:

[review link]

Thanks, [Your name], [Business name]

Company-run review sites and fake followers: sections 465.6 and 465.8

"Independent" review sites you control

Section 465.6 bans misrepresenting that a website or organization you control gives independent reviews or opinions about a category that includes your business. Made-up examples: an HVAC contractor builds "[City] HVAC Ratings" and ranks itself first without saying it owns the site; a dental practice runs an "independent" guide to the best local cosmetic dentists. The section doesn't cover customer reviews on your own website. The Q&A notes that a disclosure of ownership may not fix an express claim of independence, so drop words like "independent" and "unbiased" and say plainly that you own it.

Fake followers, likes and views

Section 465.8 bans buying or selling fake indicators of social media influence, such as followers, likes, views, shares and comments from bots or hijacked accounts, when the buyer knew or should have known they were fake and they misrepresent influence for a commercial purpose. A new fitness studio buying a "starter pack" of followers so its page looks busy is the local version. The Q&A says followers you gain from an influencer's recommendation are real people and outside this section.

Threats, false accusations and hidden reviews: section 465.7

Nobody may use a groundless legal threat, a physical threat, intimidation, or a public accusation they know is false (or make with reckless disregard for the truth) to stop a review being written or get one taken down. You can still reply publicly, contact the customer to fix the problem, and take legal action that has a real basis.

That's paragraph (a) of section 465.7, and its wording covers "anyone," so it reaches owners and staff as individuals. Section 465.1 defines a groundless legal threat as one based on legal claims existing law doesn't support, or on facts with no evidence behind them.

On replies, the FTC's Q&A says: "Yes, you can respond publicly to the review, and yes, you should watch what you say." It also says the rule doesn't prohibit "simply asking satisfied customers to update their reviews." Google forbids offering anything for a revision or removal, so if you mention an update at all, keep it a plain request and offer nothing in return. Whether a legal claim has a real basis is a question for a lawyer.

DDana R.

Google

Brakes are still squealing a week later. Nothing got fixed.

Reply from Fairview Auto Care

Hi Dana, thank you for telling us, and I'm sorry about the noise. That's not the experience we want anyone to have. Please call me at the shop at [phone number] so we can look into what's going on. Marcus, owner

When you think a review is fake

"We know you're from the competitor down the street" is a public accusation. If you know it's false, or you're guessing with reckless disregard for the truth, and you're using it to get the review taken down, section 465.7 applies. Say only what you can verify, such as having no record of the visit, and report the review through the site's own process. Health practices should read HIPAA-compliant review responses before replying this way, since even a reply about records can reveal something.

Template: reply to a review you can't match to a customer

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Hi [Reviewer name], thank you for taking the time to write. We keep a record of every [job / appointment / order], and we can't find one that matches this description. We'd like to understand what happened, so please call [Your name] at [phone number] or email [email address].

[Your name], [Business name]

How to respond to fake reviews on Google has more replies like this, and how to respond to negative reviews covers the honest bad ones, which are most of them.

Hiding bad reviews on your own website

Paragraph (b) applies if your website collects and displays reviews. You may not imply that the reviews shown represent most or all of those submitted while holding some back because of their rating or negative sentiment. The FTC's warning letter template says this applies whether you filter reviews yourself or a third party does it for you.

You can still withhold reviews for reasons applied to every review regardless of rating, such as abusive or obscene content, someone else's personal information, clearly false content, reviews you reasonably believe are fake, and reviews wholly unrelated to what you sell. If your site shows a hand-picked selection of Google reviews, label it as a selection. How to add Google reviews to your website covers the display options.

FTC fake reviews penalty and enforcement so far

The FTC's Q&A says the rule "authorizes courts to impose civil penalties for knowing violations." As of October 14, 2026, the maximum the FTC lists is $53,088 per violation (16 CFR 1.98, in effect since January 17, 2025). It's adjusted for inflation, so check the figure before relying on it. The FTC's business blog says penalties "can quickly add up." Customers can't sue under the rule, but the FTC can, and in its May 2026 case a state joined it.

The December 2025 warning letters

On December 22, 2025, FTC staff sent warning letters to 10 companies it didn't name, based on consumer complaints and information the companies provided. The FTC said the letters are not formal findings of a violation. The published template asks recipients to stop any noncompliant conduct, remove problematic reviews from sites they control and try to have them removed elsewhere, and email the FTC within 5 business days naming who is responsible for review practices. Its sample description of the conduct is "providing compensation to your employees in exchange for the employee obtaining 5-star reviews from friends and family." If a letter like this arrives, call a lawyer before you reply.

The May 2026 civil penalty case

On May 11, 2026, the FTC and the state of Illinois announced a civil penalty complaint against B.E.S.T. GDR LLC, doing business as Premium Home Service, and its owner. The complaint alleges the company created thousands of online profiles for home repair businesses that don't exist, posted fabricated five-star reviews that diluted real one-star reviews, and sought and used fake reviews from employees and relatives. The Department of Justice filed it in federal court in Illinois. These are allegations, and the release reports no court finding. Check the FTC's press releases for newer cases.

How the FTC rule differs from Google's and Yelp's rules

The FTC rule is the legal floor. Google and Yelp set stricter rules for their own sites, so in practice you follow the strictest one.

Yelp's content guidelines say "Businesses should never ask customers to write reviews," and its owner guidance warns that its software "may not recommend reviews that seem to be prompted or encouraged by the business." For Yelp, do good work and reply to the reviews you get; how to respond to Yelp reviews shows how. Google's help page on reviews says you can ask customers to visit a Google link or scan a QR code, and its policy prohibits trying to "discourage or prohibit negative reviews." Google review policy: what businesses can and can't do covers the rest.

The Consumer Review Fairness Act and "no bad reviews" clauses

A separate federal law covers contracts. The FTC's guide to the Consumer Review Fairness Act says it's illegal to use a form-contract provision that "bars or restricts the ability of a person who is a party to that contract to review" the company, "imposes a penalty or fee against someone who gives a review," or takes the reviewer's intellectual property rights in their review. A business can still remove reviews that contain private information, are libelous, harassing or obscene, are unrelated to what it sells, or are clearly false or misleading. The FTC notes that a review you simply disagree with is unlikely to meet that last standard. The FTC and state attorneys general enforce the Act.

Check your estimates, service agreements, intake paperwork and booking terms for clauses like this, especially forms copied from a template years ago.

Common mistakes that break the rule

Most violations by small businesses start as a shortcut that seemed harmless.

• Seeding a new listing with reviews from friends and family "just to get started."
• Running an "honest review" raffle. The FTC says its rule doesn't bar a prize that isn't tied to sentiment. Google and Yelp prohibit incentives.
• Handing reviews to an agency without asking how it gets them. The FTC's Q&A says reputation management firms and review brokers can be liable, and the letter template treats filtering done by a third party the same as your own.
• Turning a customer's spoken praise into a review and posting it under their name.
• Asking the front desk, the techs or your own siblings to "help out" with reviews.
• Replying "we know who you really are" when you don't.
• Leaving an old "no negative reviews" clause in your contract template.
• Buying followers for a new page so it doesn't look empty.

Do and don't checklists for a plumber, a dentist and a salon

A plumbing company

A dental practice

Health practices also have rules about what a reply may reveal: see HIPAA-compliant review responses, and how to get more Google reviews for your dental practice for asking.

A hair salon

How to get more salon reviews has scripts for the checkout ask.

A quick audit for any business

Your review practices, checked against the rule

• Every customer gets the same review request, whatever you expect them to say
• Nothing is offered in exchange for a review, a rating or a changed review
• No request hints at the rating you hope for
• Owners, managers, staff and their close relatives don't review the business
• Staff have a written review policy
• Every testimonial in your ads, website and print comes from a real customer, in their words
• Nobody writes reviews for the business, by hand or with AI
• No followers, likes or views have been bought
• Any site you run that rates businesses like yours says you own it
• Replies to negative reviews contain no threats and no claims you can't back up
• Your contracts and forms contain no clauses that restrict or penalize reviews
• If your website collects reviews, it never implies it shows them all while holding back low ratings

0 of 12 done

Where Reputation Beam fits

Reputation Beam sends review requests by text message and email from your dashboard, and each request carries its own link that expires after 72 hours. Who gets a request, what you offer and what you write in a reply are your decisions, so the habits in this guide stay yours.

Keep going

Google review policy: what businesses can and can't do covers the platform rules on top of the FTC's. Before starting any reward program, read can you offer incentives for Google reviews?, and before anyone on your team posts a review, read can employees leave Google reviews? When a review looks fake, how to remove a Google review covers what you can do, and how to get more Google reviews without breaking the rules puts the honest ask into practice. Contract terms that try to stop customers from reviewing you fall under a separate law, covered in the Consumer Review Fairness Act.