FTC Finalizes Fake Reviews Rule: What E-Commerce Sellers Need to Know

The Federal Trade Commission has finalized its rule targeting fake reviews and testimonials, with civil penalties of up to **$51,744 per violation** now enforceable. If you sell products online, this rule directly affects how you collect, display, and manage customer reviews.

What the Rule Prohibits

• **Fake or AI-generated reviews** — Creating, buying, or publishing reviews written by people who never used the product, including AI-generated reviews presented as genuine consumer experiences.
• **Insider reviews without disclosure** — Reviews by employees, officers, or agents of the company without clear disclosure of the relationship.
• **Review suppression** — Selectively publishing only positive reviews while hiding negative ones, or using legal threats to prevent honest negative reviews.
• **Buying positive or negative reviews** — Paying for reviews (positive for your products or negative for competitors).
• **Fake social media engagement** — Purchasing followers, likes, or views to misrepresent influence or popularity.

What E-Commerce Businesses Should Do

1. **Audit your review sources.** If you use a review platform, confirm it has safeguards against fake reviews and doesn't suppress negative feedback. 2. **Disclose insider relationships.** If employees, brand ambassadors, or affiliates leave reviews, ensure clear disclosure (e.g., "I work for this company"). 3. **Don't cherry-pick.** If you display reviews, show them representatively. Filtering out all negative reviews violates the rule. 4. **Review your influencer agreements.** Paid endorsements must be clearly disclosed per existing FTC Endorsement Guides, and now carry stiffer penalties.

Enforcement Timeline

The rule took effect in late 2025 and the FTC has signaled it will pursue enforcement aggressively. Several investigations are already underway targeting e-commerce platforms and third-party review brokers.

---

**Disclaimer:** This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice specific to your business.