The FTC Consumer Review Rule: What Small Businesses Must Know

The FTC consumer review rule is a federal regulation, in force since October 21, 2024, that bans fake reviews, paying for reviews with a required sentiment, undisclosed reviews from insiders and the suppression of negative reviews. It applies to businesses of every size. Asking all your customers for an honest Google review is still allowed.

Its full name is the Trade Regulation Rule on the Use of Consumer Reviews and Testimonials, codified at 16 CFR Part 465. The Commission approved it unanimously, 5-0, on August 14, 2024. Most coverage of the rule is written for large brands and e-commerce platforms. This guide looks at it from the point of view of a local business that collects reviews on its Google Business Profile.

The rule bans six practices, each in its own section. Section 465.3 is currently reserved, so the numbering skips it.

Yes. There is no size exemption. The FTC's own question-and-answer guidance includes questions from small business owners, for example about asking family members to write reviews, and answers them under the same rules as everyone else.

The rule also reaches reviews posted on third-party platforms. If you write, buy or procure fake reviews and they end up on Google, Yelp or anywhere else, the fact that you do not run the platform does not protect you. What the rule does not do is make you liable for reviews strangers post about you on their own initiative.

Yes. The FTC's guidance says the rule does not prohibit generalized solicitations asking purchasers to post reviews about their experiences. A sign at the register, a line on your receipt, a follow-up text or a Google Review Card that opens your review form all fit that description, provided you ask customers generally and let them write whatever they think.

Under the FTC rule, an incentive is only banned when it is conditioned, expressly or by implication, on the review expressing a particular sentiment. The FTC's guidance accepts that an unconditional incentive for an honest review does not breach section 465.4.

Google's policy is stricter. The Google Maps user-contributed content policy prohibits offering incentives, such as payment, discounts, free goods or services, in exchange for posting any review, whatever its rating. So for Google reviews there is no gray area: offer nothing in return. Our guide to whether review cards are allowed by Google explains Google's side in more detail.

Review gating means screening customers first and sending only the happy ones to Google. The Consumer Review Rule does not contain a specific ban on it, but the FTC's guidance warns that the practice could still violate Section 5 of the FTC Act. Google's policy separately prohibits selectively soliciting positive reviews. Our article on review gating shows why the risk is not worth it.

Under the FTC rule, insiders may review a business only if their relationship is clearly and conspicuously disclosed. Section 465.5 also bars officers and managers from soliciting reviews from employees or relatives without making sure that disclosure happens. There is an exception for generalized solicitations: if you send the same request to all recent customers and an employee happens to be one of them, you have not broken the rule.

On Google, the answer is simpler. Google's policy prohibits content based on a conflict of interest, including current or former employment, so staff should not review their own workplace even with a disclosure.

Section 465.7 bans using unfounded or groundless legal threats, physical threats, intimidation or false public accusations to stop a review being posted or to get one removed. It also bans hiding reviews on your own website based on their rating or sentiment while implying that the reviews you show are all or most of the reviews you received.

You can still remove reviews from your own site for legitimate reasons the rule lists, such as content that is defamatory, discriminatory, contains private information, is clearly false or misleading, or is unrelated to your products or services, provided you apply the same standard to positive and negative reviews. On Google, you cannot delete reviews yourself; you can reply publicly or report a review that breaks Google's policies. Separately, the Consumer Review Fairness Act of 2016 makes it illegal to put clauses in form contracts or online terms that restrict or penalize honest reviews.

The rule lets courts impose civil penalties for knowing violations. Penalties are assessed per violation rather than per business, so a campaign of many fake reviews can add up quickly. The maximum amount is set by federal law and adjusted for inflation, and the FTC states the current figure in its announcements.

The first public use of the rule came on December 22, 2025, when the FTC sent warning letters to 10 companies about possible violations. The letters did not name the companies publicly, but they show the agency is actively monitoring compliance.

Most of this comes down to a simple routine. Our guide to asking customers for Google reviews naturally covers wording and timing, and our article on fake Google reviews explains how to spot and report them. For more on the rules side, browse our review rules and compliance hub.