What Are the FTC Rules on Fake Reviews for Small Businesses?

The short answer

Federal law bans fake reviews, buying reviews that must be positive, hidden reviews from employees or family, and threats or tricks to get reviews removed. The Federal Trade Commission (FTC) rule on consumer reviews took effect October 21, 2024, and courts can fine businesses that knowingly break it. Google’s own policy goes further and bans any payment, discount, or free item in exchange for a review.

What this tells Google and AI

Reviews are one of the strongest direct inputs a local business has. Google says reviews are part of prominence, one of the three things that decide local ranking. Bing, Apple, and artificial intelligence (AI) tools read reviews too. Real reviews from real customers build trust over time. Fake or bought reviews can be removed, and Google can restrict a profile that breaks its rules, which can take away the very signal you were trying to build.

What this means

The FTC’s Rule on the Use of Consumer Reviews and Testimonials bans these practices:

• Fake reviews: writing, buying, or selling reviews from people who didn’t use your business, or that misstate their experience. This includes AI written fake reviews.
• Paying for positive reviews: offering anything of value for a review that must say something good, whether you say it outright or just imply it.
• Hidden insider reviews: reviews from owners, employees, managers, or their relatives without a clear disclosure of the relationship.
• Fake “independent” review sites: a review site you control that pretends to be neutral.
• Review suppression: threats, intimidation, or false accusations to stop or remove reviews.
• Fake social influence: buying fake followers or views to look more popular.

The rule doesn’t ban asking only happy customers for reviews, but the FTC says that practice can still break the FTC Act. Google’s policy bans it outright. Google also bans payment, discounts, or free goods for any review, even if you don’t ask for a positive one (see 14.10.3 Review Gating and Incentives).

Made-up example: Maple Street Bakery’s manager posts a 5 star review under a personal account and offers customers a free cookie for leaving a review “if you loved us.” Both break the rules. The fix is a plain request to every customer, with no reward, and no reviews from staff.

Why it matters

• Civil penalties. The rule lets courts impose civil penalties for knowing violations.
• The FTC is enforcing it. In December 2025 the FTC announced warning letters to 10 companies about possible violations.
• Google removes fake reviews and can restrict or suspend profiles that manipulate ratings (see 14.8.4 Suspensions and Reinstatement).
• Customers notice. A wall of similar 5 star reviews with no detail makes people trust you less.
• State laws apply too. State attorneys general enforce their own consumer protection laws.

Who this applies to

Every business that gets, shows, or manages reviews, and anyone you hire to do it, like a marketing agency or review software company. You can be responsible for what they do on your behalf.

How to do it

1. Write a review policy that bans fake reviews, staff reviews without disclosure, and rewards tied to reviews.
2. Ask every customer the same neutral way (see 14.6.2 Neutral Review Requests). Don’t screen out unhappy customers first.
3. Offer no reward for Google reviews. Google bans it even for neutral requests. If another platform allows neutral rewards, check its rules and disclose the reward.
4. Tell staff and family not to review your business, or to disclose the relationship clearly where a platform allows it.
5. Never trade a refund or discount for removing a bad review. Google bans this too.
6. Respond to bad reviews calmly and never threaten the reviewer (see 14.6.3 Review Responses). Flag only reviews that actually break a platform’s rules (see 14.10.2 Flagging Reviews That Break the Rules).
7. Check your vendors. Get in writing that your marketing agency or review tool won’t post fake reviews or gate requests.
8. Show testimonials honestly on your website, with permission (see 11.1.13 Testimonial Permission).

What proof to keep

• Your written review policy, signed by staff
• Copies of your review request messages and when they were sent
• A record showing every customer got the same request
• Vendor contracts with review terms
• Your responses to negative reviews

Common mistakes

• “Leave us 5 stars and get 10% off.” That’s a reward tied to a positive review.
• A “rate us” screen that sends happy customers to Google and unhappy ones to a private form.
• Employees reviewing from personal accounts.
• Asking a reviewer to remove a review in exchange for a refund.
• Buying a review package from a company that promises a certain number of 5 star reviews.
• Threatening to sue over an honest bad review.

When to get help from a pro

Attorney: if a reviewer posted something you believe is false and harmful, or before you set up any review reward program. Questions to ask:

• Is my review request process allowed under the FTC rule and my state’s law?
• Can I respond to this review without creating legal risk?
• Does my vendor contract protect me if the vendor breaks the rules?

Bill’s note

[Bill: add a short note. For example, what you’ve seen happen to businesses that bought reviews, or how SiteSmarty helps clients get more real reviews without breaking the rules.]

If you’d rather have this done for you, SiteSmarty sets up review requests that follow Google’s rules.

How I did this for SiteSmarty

• [Date I did this:]
• [What I actually did, step by step: writing the SiteSmarty review policy and setting up neutral requests]
• [What it cost and how long it took:]
• [What surprised me or what I’d do differently:]
• [Screenshot or photo to add, with private info blurred: the review request message and the written policy]
• [Result so far:]

Questions people ask

Can I give a discount for a Google review? No. Google bans payment, discounts, or free items for reviews, even if you don’t ask for a positive one.

Can my employees review my business? The FTC rule requires a clear disclosure of the relationship. Google bans reviews based on a conflict of interest, so the safe answer is no.

Can I ask only happy customers for reviews? Google bans it. The FTC rule doesn’t name it, but the FTC says it can still be deceptive under the FTC Act.

What are the penalties? Courts can impose civil penalties for knowing violations of the FTC rule. Google can remove reviews and restrict your profile.

Audit check

• Question: Does the business get reviews only through neutral requests to all customers, with no fake, bought, insider, or suppressed reviews?
• Pass looks like: Written review policy, the same request sent to every customer, no rewards, no staff reviews, calm responses to bad reviews.
• Fail looks like: Review gating, discounts for reviews, staff or family reviews, bought review packages, threats to reviewers.
• Evidence to collect: Review policy, request messages and send logs, vendor contracts, sample review responses.

Where this fits

Do this first: 11.3.3 Guarantees, 11.1.13 Testimonial Permission

Do this next: 11.3.9 Comparative Claims

Related pages: 14.10.1 Google Review Policies, 14.10.2 Flagging Reviews That Break the Rules, 14.10.3 Review Gating and Incentives, 14.6.1 Review Request Timing, 14.6.2 Neutral Review Requests, 14.6.3 Review Responses, 19.6.4 Review Structured Data

Sources

• Federal Trade Commission, "The Consumer Reviews and Testimonials Rule: Questions and Answers" (checked October 17, 2026)
• Federal Trade Commission, "FTC Warns 10 Companies About Possible Violations of the Agency's New Consumer Review Rule" (December 2025) (checked October 17, 2026)
• Google Maps User Generated Content Policy Help, "Prohibited and restricted content" (checked October 17, 2026)
• Google Business Profile Help, "Tips to improve your local ranking on Google" (checked October 17, 2026)

This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.