Is It Legal to Offer Incentives for Reviews or Only Ask Happy Customers?

By Bill Stilwell · Last reviewed October 16, 2026

The short answer

On Google, don’t offer anything for a review, and don’t ask only happy customers. Google bans both. Federal law adds more: the Federal Trade Commission (FTC) rule on consumer reviews bans fake reviews and bans rewards tied to positive (or negative) reviews, and the FTC says inviting only satisfied customers can be deceptive. The safe approach is to ask every customer the same way, with no reward.

What this means

There are two separate problems here.

Review gating means filtering who gets asked. A common setup: the software asks “How did we do?” Happy customers get a Google link. Unhappy ones get a private feedback form. Google’s policy bans selectively asking for positive reviews and discouraging negative ones. The FTC’s Endorsement Guides give an example saying that inviting only satisfied customers may be deceptive or unfair.

Incentives means giving something in return for a review, like a discount, a gift card, or a prize drawing entry.

Google bans money, discounts, or free goods or services for reviews. No exceptions.
The FTC rule (Part 465 of Title 16 of the Code of Federal Regulations (CFR), effective October 21, 2024) bans offering anything in exchange for a review that has to be positive or negative. The FTC’s questions and answers page says an incentive that doesn’t depend on what the review says isn’t banned by the rule, but the reward must be disclosed under the Endorsement Guides.

So a reward that might be legal under FTC rules can still break Google’s policy. For Google reviews, Google’s stricter rule is the one to follow.

The FTC rule also bans:

Writing, buying, or selling fake reviews
Undisclosed reviews from officers or managers of the business
Fake “independent” review websites you control
Suppressing reviews with threats, intimidation, or unfounded legal threats
Buying fake followers or views

Say Coastal Pest Control buys review software. By default, it sends low ratings to a private form. The owner turns that off so every customer gets the same Google link. No discounts, no prize drawings.

Why it matters

Civil penalties. The FTC says the rule lets it seek civil penalties from businesses that knowingly break it. In December 2025, FTC staff sent warning letters to 10 companies about possible violations.
Google restrictions. Google can block new reviews, hide existing ones, and put a warning on your profile (see 14.10.1 Google Review Policies).
Software defaults can get you in trouble. Some review tools gate by default. You may be breaking the rules without knowing it.
Trust. Customers can tell when every review sounds the same.

Who this applies to

Every business that asks for reviews anywhere. The FTC rule applies to businesses, not the customers who write reviews. If a marketing company or software does it for you, you’re still responsible for your own practices.

Rules for other review sites, like Yelp, differ. Check each site’s own rules before you ask for reviews there.

How to do it

List every way you ask for reviews: texts, emails, cards, receipts, software, and staff.
Check your review software for a filter, a rating screen, or a “feedback first” step. Turn it off so every customer gets the same link.
Remove any reward tied to reviews on Google. That includes discounts, gift cards, raffles, and “thank you” freebies.
Remove review quotas or bonuses for staff.
Write one neutral request and use it for everyone (see 14.6.2 Neutral Review Requests).
Tell staff and family not to review the business. If a manager ever posts a review anywhere, the FTC rule requires clear disclosure of the connection.
Never threaten customers over reviews or pay to remove one.
If you run a referral program, keep it separate from reviews (see 18.7 Referral Programs).
Have an attorney review your program if anything involves rewards, contests, or testimonials.

What proof to keep

Screenshots of your review software settings showing no gating
Your standard review request message and the date you started using it
Your written staff policy on reviews
Your attorney’s notes on any review or rewards program

Keep these with your legal records. If the FTC or Google asks how you collect reviews, this is your proof.

Common mistakes

Trusting the software default. Many tools are set to send unhappy customers to a private form. Check it.
“Leave a review and enter our drawing.” Google bans it, no matter what the review says.
Thinking disclosure fixes everything. The FTC says paying for five-star reviews breaks the rule even if the reviewer discloses the payment.
Bonuses for staff based on review counts. Google bans review quotas for employees.
Hiding bad reviews on your website. The FTC rule bans implying your displayed reviews are all or most of them when negative ones were left out.
Copying a competitor’s program. Theirs may be breaking the rules too.

When to get help from a pro

Attorney: before running any program that ties rewards, contests, or discounts to reviews or testimonials, or if you get a letter from the FTC. Questions to ask:

Does my review process follow the FTC’s consumer review rule and the Endorsement Guides?
Are my testimonials and their disclosures on my website set up correctly?
What should I change in my review software settings?

Bill’s note

[Bill: add a short story or lesson here. For example, review software you’ve seen with gating turned on by default, or a business that lost reviews after running a “review for a discount” promo.]

If you’d rather have this done for you, SiteSmarty handles Google Business Profile management, including review requests that follow Google’s rules.

How I did this for SiteSmarty

[Date I did this:]
[What I actually did, step by step: how SiteSmarty asks for reviews and how I checked the settings for gating]
[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: review tool settings showing every customer gets the same request]
[Result so far:]

Questions people ask

Can I give customers a discount for leaving a review? Not for Google reviews. Google bans offering discounts, money, or free items for reviews.

What is review gating? Asking only happy customers for public reviews, or steering unhappy customers away from posting. Google bans it, and the FTC says it can be deceptive.

What does the FTC fake review rule ban? Fake reviews, buying positive or negative reviews, undisclosed insider reviews, fake independent review sites, review suppression through threats, and fake social media followers.

Can I enter reviewers into a prize drawing? Not for Google reviews. Google treats it as an incentive.

Do I have to disclose that a reviewer got something free? Under the FTC’s Endorsement Guides, a material connection like a free product should be disclosed. On Google, the incentive itself isn’t allowed.

Audit check

Question: Does the business ask every customer for reviews the same way, with no filtering, no rewards, and no staff quotas?
Pass looks like: Review software with no gating step. One neutral request for everyone. No discounts, drawings, or freebies tied to reviews. A written staff policy. Attorney review of any rewards program.
Fail looks like: A “how did we do” screen that sends only happy customers to Google. Discounts or prize entries for reviews. Staff bonuses tied to review counts. Bad reviews hidden on the website.
Evidence to collect: Screenshots of review software settings, the request message, the staff policy, and any legal review notes.

Where this fits

Do this first: 14.10.1 Google Review Policies, 14.6.2 Neutral Review Requests

Do this next: 14.11.1 Bing Places for Business

Sources

Electronic Code of Federal Regulations, 16 CFR Part 465, "Rule on the Use of Consumer Reviews and Testimonials" (checked October 16, 2026)
FTC, "The Consumer Reviews and Testimonials Rule: Questions and Answers" (checked October 16, 2026)
FTC press release, "Federal Trade Commission Announces Final Rule Banning Fake Reviews and Testimonials" (August 14, 2024) (checked October 16, 2026)
FTC press release, "FTC Warns 10 Companies About Possible Violations of the Agency's New Consumer Review Rule" (December 2025) (checked October 16, 2026)
Electronic Code of Federal Regulations, 16 CFR Part 255, "Guides Concerning the Use of Endorsements and Testimonials in Advertising" (checked October 16, 2026)
Google Maps User Generated Content Policy Help, "Prohibited & restricted content" (checked October 16, 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.