What the FTC rule bans
Since 21 October 2024, a Federal Trade Commission rule has banned:[1][2]
- fake reviews and testimonials, including AI-generated ones and reviews from people who don't exist or have no real experience with the business
- paying for reviews on condition that they're positive or negative
- reviews by company insiders that don't clearly disclose their connection
- company-controlled review sites that claim to be independent
- buying or selling fake social media indicators, such as bot followers or views, to misrepresent influence
Paid connections should be disclosed
The FTC's Endorsement Guides say that when someone recommending a product has a connection to the seller that people wouldn't expect, such as being paid, getting free products or earning commission through affiliate links, that connection should be disclosed clearly and close to the recommendation.[3] A recommendation with links but no disclosure is a reason to be careful.
Signs a review isn't real
- A burst of reviews within a few days, then almost nothing.
- Every review is five stars, and many use similar wording.
- Reviews describe effects on the reviewer's own body or health. Products sold for research use only aren't for people, so these reviews contradict the product's own label. Don't treat them as evidence of anything.
- A “review” or “comparison” site that only ever points to one seller, or earns commission without saying so.
- Social accounts with large follower counts but very little real conversation.
Sources
- Federal Trade Commission. Federal Trade Commission announces final rule banning fake reviews and testimonials. 14 August 2024.
- Federal Register, Vol. 89, No. 163. Trade Regulation Rule on the Use of Consumer Reviews and Testimonials; Final Rule (16 CFR Part 465). 22 August 2024. Effective 21 October 2024.
- Federal Trade Commission. FTC's Endorsement Guides: What people are asking.