FTC rule on fake reviews.In plain English.

It took effect on October 21, 2024. The FTC enforces it, and the rule itself doesn't give customers a right to sue.

The rule covers fake or false reviews and testimonials, buying reviews that must say something positive or negative, undisclosed reviews by a company's own officers and managers, review websites a company controls but presents as independent, review suppression through groundless legal threats, physical threats or intimidation, and fake signs of social media influence, such as bought followers.

Courts can impose civil penalties for knowing violations, currently up to $53,088 per violation. In December 2025, FTC staff sent warning letters to 10 companies about possible violations.

The rule doesn't stop a business from contacting a customer who left a negative review to fix the problem, or from asking satisfied customers to update their reviews.

For a local business, that means never writing or buying reviews, never tying a reward to a positive review and never threatening a customer over a negative one.

Example: a contractor who threatens to sue a customer over an honest one-star review, to get it taken down, risks breaking the rule's ban on review suppression.