On August 14, 2024, the Federal Trade Commission (FTC) enacted a major regulatory update that formally bans fake reviews and deceptive testimonials. This move strengthens prior guidelines, now backed by enforceable civil penalties, and sends a clear message: authenticity in consumer reviews is no longer optional — it’s a legal requirement.
Under the new rule, businesses are prohibited from:
- Creating or purchasing fake consumer or celebrity testimonials, including AI-generated ones.
- Publishing insider reviews (e.g., by employees or contractors) without disclosure.
- Operating company-controlled “independent” review sites.
- Suppressing or intimidating customers to remove negative reviews.
- Offering incentives solely for positive or negative sentiment.
- Misusing fake social media indicators, like bot-generated followers.
Violating any of these provisions could result in significant financial penalties and damage to your business reputation. Now is the time to tighten your review strategy and align with these legal expectations.
Why Transparency and Authenticity in Reviews Now Matter More Than Ever
Your reviews aren’t just marketing assets — they’re trust signals. The FTC’s ruling underscores how deceptive review practices not only mislead consumers but also create unfair competition. Genuine, balanced reviews help customers make informed choices and set honest expectations.
By aligning your review strategy with these transparency standards, you’re not only staying compliant — you’re also reinforcing your brand’s integrity in a digital marketplace flooded with manipulation.
Key Areas of Compliance to Avoid FTC Penalties
Complying with the new rule involves more than deleting a few suspicious reviews. Below are key strategies your business should adopt:
Conducting a Review Practices Audit
Start by auditing your review management practices to ensure they align with current FTC guidelines. This includes identifying any processes that might unintentionally promote fake, misleading, or unverifiable reviews. Rather than trying to remove legitimate negative reviews, focus on refining your strategy for responding to feedback professionally and ethically.
Need help evaluating your review performance? Request your Free Review Scorecard now to see how you compare in your industry.
Updating Internal Policies and Team Education
Educate your staff — especially anyone involved in marketing or customer service — on the dangers of fake reviews. Update your internal policies to clearly prohibit staff from leaving undisclosed testimonials and define procedures for managing public reviews ethically.
This is a great time to align your review playbook with FTC-approved practices.
Monitoring and Flagging Fake Reviews
Use monitoring tools to get alerts when new reviews are posted. Stay vigilant for fake or malicious content and use each platform’s official process for flagging and removing violations.
Want to see how this looks in action? Watch our Demo Video to understand how you can monitor and manage reviews automatically — while staying compliant.
How Your Business Can Build a Legitimate Review Strategy
Creating an authentic, effective review strategy is your best defense — and your strongest growth tool.
Ask for Honest Feedback — Not Just Positive
Instead of cherry-picking happy customers, invite all customers to leave honest feedback. Position your requests to encourage transparency, not just praise. Over time, this builds credibility and boosts your review volume organically.
Responding to Reviews with Consistency
Whether a review is glowing or critical, every customer deserves a response. Replying demonstrates that you’re listening, invested, and eager to improve.
Pro tip: Consistent engagement not only boosts trust but encourages more reviews from future customers.
Using Reviews to Improve the Customer Experience
Every piece of feedback is a chance to improve. Track common themes in your reviews to uncover service gaps, product issues, or potential innovations. Use reviews as a direct channel into your customer’s experience — and act on what they’re telling you.
Next Steps to Protect Your Business Reputation
The new FTC rule isn’t just a regulation — it’s a wake-up call to upgrade how you manage your online reputation. If you’re unsure where to start:
- Audit your reviews immediately
- Educate your team
- Implement tools that support compliance
- Create a clear, honest, customer-first review strategy
And remember: if you don’t know where your business stands, you’re flying blind.
Receive a snapshot of your online reputation — including your average rating, review frequency, and market comparison — delivered to your inbox in minutes.
Explore how review automation and compliance safeguards can support your team and reputation goals.
Why My Review Concierge is Your Trusted Partner for FTC-Compliant Review Management
At My Review Concierge, we believe real businesses deserve real reputations — and we’re here to help you build one.
With our platform, you can:
- Automatically request reviews the right way
- Monitor your feedback across platforms in real-time
- Identify and report fake reviews swiftly
- Educate your team on FTC-compliant best practices
Don’t risk your reputation or your revenue. Whether you’re a small local business or managing multiple locations, we make ethical review management easy and effective.
Final Thought
The FTC has made its stance clear: fake reviews are out, and authenticity is in. Businesses that embrace this shift not only avoid penalties — they earn trust, loyalty, and sustainable growth.
Stay ahead of compliance and ahead of the competition.
