The FTC Fake Reviews Rule, formally the Rule on the Use of Consumer Reviews and Testimonials at 16 CFR Part 465, took effect on October 21, 2024. It bans buying, selling, or creating fake consumer reviews and testimonials, including AI-generated reviews from people with no real experience of the product.
What the FTC Fake Reviews Rule Prohibits
The rule prohibits paying for reviews conditioned on being positive or negative, undisclosed reviews by company insiders or their relatives, misrepresenting an on-site review section as independent, and using threats to remove negative reviews. Directly relevant to social marketing, it also bans buying or selling fake indicators of social media influence, such as bot followers, likes, or views used to misrepresent influence for commercial purposes.
Penalties and Compliance Steps
Because it is a formal trade regulation rule rather than a guide, the FTC can seek civil penalties of more than $50,000 per violation from the first offense. Any business that manages its own reviews, hires review vendors, or promotes follower counts should audit those practices against this rule before the next campaign goes live.
Source: Electronic Code of Federal Regulations: 16 CFR Part 465
Report a violation: If you believe a business is violating this law, you can file a complaint at FTC Fraud Report.
