FTC Review Violations & Enforcement

FTC 16 CFR Part 465 — The Review Rule

In August 2024, the FTC's final rule on fake reviews and testimonials became effective. The rule prohibits:

• creating, buying, or disseminating fake consumer reviews
• using insider reviews — reviews from employees or company insiders without clear disclosure
• providing compensation for reviews without clear disclosure of the material connection
• buying positive reviews or negative competitor reviews
• suppressing negative reviews through intimidation, legal threats, or selective removal
• misrepresenting social media indicators such as followers or likes

The rule allows the FTC to seek civil penalties for violations, making compliance more important than ever for brands with an online presence.

Examples of FTC Review Violations

Common review practice violations the FTC has focused on include:

• incentivized reviews where the incentive is not clearly disclosed
• fake or fabricated customer testimonials on websites
• company employees posting reviews as independent customers
• offering products in exchange for positive reviews without disclosure
• review gating — selectively soliciting only positive reviews for public display
• suppressing or deleting negative reviews to manipulate star ratings

FTC Enforcement Actions & Penalties

The FTC has taken enforcement action against brands and platforms across ecommerce. Enforcement can result in:

• civil monetary penalties per violation
• mandatory compliance programs
• consumer redress requirements
• injunctions against future deceptive practices
• significant reputational damage

The FTC's rule under 16 CFR Part 465 strengthens its ability to pursue civil penalties against violators, making compliance significantly more consequential than prior guidance alone.

Ecommerce Implications

For Amazon sellers, DTC brands, and ecommerce merchants, FTC review violations most commonly arise from:

• running rebate programs that require review submission as proof
• using third-party services that promise reviews through product giveaways
• employees or brand representatives leaving undisclosed reviews
• building review funnels that suppress negative feedback
• using social media influencers without clear sponsorship disclosure

See FTC review rules for a broader overview of FTC review guidance.

Frequently Asked Questions