In the age of online shopping and social media, reviews can make or break a business. But did you know that fake reviews, undisclosed connections, and shady testimonial practices could land your business—or your clients—on the wrong side of the Federal Trade Commission (FTC)? That’s right! The FTC’s latest rules on consumer reviews and testimonials aren’t just recommendations—they’re the law.
Here’s what every lawyer, business owner, and savvy entrepreneur needs to know. Share this with your clients or your network because these rules could save their reputation (and their wallet)!
1. Fake Reviews = Real Consequences
Buying or selling fake reviews? It’s not just unethical—it’s illegal. The FTC’s new rule explicitly bans the sale or purchase of fake reviews or testimonials. This includes using AI to generate glowing reviews from nonexistent customers. Yes, they’re watching.
2. Honesty Is the Best Policy in Testimonials
If someone gives a testimonial or review, they must have actually used the product or service. Misleading testimonials that exaggerate results or misrepresent experiences are off-limits.
3. Insider Reviews Need Disclosure
If an employee, family member, or anyone with ties to a company posts a review, their connection must be disclosed. Transparency is key—hiding these relationships is considered deceptive.
4. Don't Suppress Negative Reviews
Think you can just delete or hide bad reviews? Think again. The FTC forbids review suppression practices, whether it’s through legal threats, intimidation, or selectively removing critical feedback.
5. Incentivizing Reviews? There’s a Catch
Offering freebies or discounts for positive reviews is a no-go. Even if you’re incentivizing honest reviews, those incentives must be disclosed to the audience.
6. Fake Social Media Clout Is Out
Purchasing fake followers, likes, or shares to make a brand seem more influential than it is? Banned. Social media manipulation isn’t just bad practice—it’s against the law.
7. “Independent” Review Websites Must Be Truly Independent
Setting up a review website that seems impartial but is secretly owned or controlled by your company? That’s a big no-no under these rules.
8. Disclosures Must Be Clear and Conspicuous
No fine print games. If there’s a material connection, such as paid sponsorships or free products, that connection must be disclosed in a way that’s impossible to miss.
9. AI and Fake Reviews: A Modern Danger
The FTC recognizes the use of AI-generated fake reviews as a growing problem. If you're thinking of taking shortcuts with technology, think twice. The penalties aren’t worth it.
10. Non-Compliance Comes with Hefty Penalties
Violating these rules can lead to substantial civil penalties, lawsuits, and even damage to your client’s reputation. Educating businesses about these risks isn’t just good practice—it’s essential.
What This Means for Lawyers
As legal professionals, it’s our job to guide businesses in staying compliant with these regulations. These FTC rules are a wake-up call for companies relying on shady marketing practices. Lawyers can play a critical role in educating clients, reviewing advertising strategies, and helping businesses implement clear policies around consumer reviews.
How You Can Help Your Clients
Audit Their Practices: Evaluate whether clients are compliant with FTC rules.
Draft Disclosure Guidelines: Ensure all material connections are properly disclosed.
Educate Influencers: Clients working with social media influencers need to understand their responsibilities under these rules.
Create Policies for Reviews: Help clients develop internal protocols to prevent deceptive practices.
Final Thoughts
In a digital world, trust is everything. The FTC’s rules aim to preserve trust between businesses and consumers by cracking down on fake reviews and deceptive testimonials. As lawyers, we have the power to help businesses build credibility while avoiding costly mistakes.
What’s your take on the new rules? Drop your thoughts in the comments and share this post with someone who needs to see it!
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