Keeping it Real: FTC Targets Fake Reviews in First Consumer Review Rule

On December 22, 2025, the Federal Trade Commission (“FTC”) took its first step in enforcing its August 2024 Consumer Review Rule (“Rule”) that regulates online companies’ moderation and curation of user reviews, by issuing warning letters to 10 unidentified companies alerting them of their potential violations of the Rule, and cautioning that continued noncompliance could lead to enforcement action and substantial civil penalties. The FTC warning letters directed each recipient to immediately cease and desist from any non-compliant practices and required the company to confirm in writing the steps taken to ensure ongoing compliance with the Rule.

This action underscores the FTC’s commitment to curbing deceptive practices in online advertising and ensuring that consumer reviews and testimonials reflect authentic customer experiences. The Rule specifically prohibits unfair or deceptive acts or practices related to the solicitation, collection, moderation, and publication of consumer reviews.  In short, the Rule:

• • Prohibits creation, sale, or dissemination of reviews or testimonials that misrepresent whether a reviewer had any experience—positive or negative—with the product or service, or whether they used it at all.
  • Prohibits businesses from offering compensation or other incentives conditioned on a specific review sentiment, whether positive or negative.
  • Requires clear and conspicuous disclosure when reviews are written by company insiders (officers, managers, employees, agents) or their immediate relatives.
  • Prohibits soliciting employee or relative reviews without disclosure.
  • Bars misrepresenting company-controlled websites as independent sources of reviews or rankings.
  • Forbids suppressing or selectively displaying reviews based on their negative sentiment or rating, as well as the use of intimidation or threats to remove negative reviews.
  • Prohibits selling, buying, or using fake indicators (e.g., followers or views) to misrepresent social media influence.

Enforcement Penalties

The FTC’s warnings serve as a clear signal that online businesses relying on consumer reviews and testimonials are now subject to heightened regulatory oversight and may face stiff penalties for noncompliance. These warning letters may serve as a precursor to future enforcement actions. Violations of the Rule can result in federal lawsuits and civil penalties of up to $53,088 per violation.

Next Steps

Companies relying on, or using, user reviews should promptly assess their current review-related practices—including how reviews are collected, moderated, and displayed—to ensure full compliance with the Rule. Proactive compliance measures can help mitigate the risk of enforcement actions and demonstrate commitment to transparency and consumer protection. Early attention to compliance will help reduce enforcement risks and foster greater trust with consumers in an increasingly regulated online marketplace.

Companies that solicit, host, moderate, or display consumer reviews should:

• • Audit Review Practices: Examine how reviews are solicited, collected, moderated, and featured. Ensure incentives are not tied to review sentiment and that all material connections are clearly disclosed.
  • Update Internal Policies: Revise compliance programs to align with the new Rule, particularly regarding insiders and review suppression.
  • Train Employees: Educate marketing, customer relations, and legal teams about the Rule’s requirements.
  • Monitor Third Parties: If they use third-party review platforms or vendors, ensure they adhere to compliance standards.

Crowell & Moring has extensive experience advising on compliance with FTC rules and online review practices. Please contact us with any questions or concerns about the Rule or compliance therewith. For more information you can check out Final Rule Announced: The FTC Strengthens Its Enforcement Capacity Against “Deceptive” Reviews and Testimonials and register to view our on-demand webinar.