The FTC Fake Review Rule: What It Means for Your Business

In October 2024, the Federal Trade Commission finalized a rule that makes it illegal to post, pay for, or suppress customer reviews. If you run a local business—a salon, dental practice, restaurant, contractor firm, or clinic—this rule affects how you ask for reviews and respond to them. Violations carry civil penalties. The good news: staying compliant is straightforward if you know the three things the FTC prohibits.

What the FTC Rule Actually Bans

The rule has three main parts. First, you cannot post fake reviews. That means no reviews from people who didn't buy from you, no reviews you wrote yourself, and no reviews from staff or friends pretending to be customers. Second, you cannot pay for reviews or offer incentives to customers in exchange for a positive rating. Third, you cannot suppress negative reviews—that is, you cannot ask customers to post only if they're happy, or hide unhappy customers while pushing happy ones to review publicly.

The rule applies to anyone who posts reviews on your behalf, too. If you hire a marketing agency or use a tool to collect reviews, they must follow the same rules.

Why Review Gating Is a Problem

Review gating is when you ask customers to rate their visit, then only send happy customers (4–5 stars) to Google while keeping unhappy ones (1–3 stars) in a private feedback form. Google's policy already prohibits this. The FTC rule reinforces it: gating is review suppression, and it's illegal.

If you use a review tool, make sure it doesn't gate. A compliant tool will offer every customer—whether they rate 1 star or 5 stars—the option to post publicly. LinkToReview, for example, sends 4–5 star customers to Google and shows 1–3 star customers a private feedback form and a public option on the LinkToReview page. No one is forced to stay private.

How to Ask for Reviews the Right Way

You can ask customers for reviews. You just can't condition the ask on a positive rating. Here's what works:

• Ask everyone. Don't wait to see how happy they are. Invite all customers to share feedback.
• Be direct. "We'd love a Google review" or "Please rate your visit" is fine.
• Make it easy. Send a link, a QR code, or a text message with your Google review link.
• Don't incentivize. You cannot offer a discount, entry into a raffle, or a free item in exchange for a review.
• Don't hint. Don't say "We'd love a 5-star review" or "Please leave a positive review." Let customers decide what to write.

If you use text message review requests, keep them simple and neutral. A script like "Hi [Name], thanks for visiting [Business]. We'd love your feedback on Google. [Review link]" works. Avoid anything that suggests you want only positive reviews.

What to Do With Negative Reviews

Negative reviews are legal and protected. You cannot delete them, pay to remove them, or punish a customer for leaving one. You can respond to them—and you should.

When you reply to a negative review, stay professional. Thank the customer for the feedback, acknowledge the specific issue, and explain what you'll do differently. Never argue, never reveal the customer's personal details, and never ask them to delete the review in exchange for a refund or discount. That's considered an incentive to suppress the review.

If a review is actually fake—posted by someone who never visited you—you can report it to Google. But you cannot pay someone to post a counter-review or hire a reputation service to flood your profile with positive reviews.

Penalties for Breaking the Rule

The FTC can pursue civil penalties against businesses and individuals who violate the rule. Penalties are per violation, and they add up fast if you've posted multiple fake reviews or gated reviews over time. The FTC also has authority to seek consumer redress—meaning you could be ordered to refund customers or pay damages.

Beyond legal risk, fake reviews damage trust. Customers and Google's algorithm can spot them. If your profile gets flagged for fake reviews, Google may remove reviews, suspend your profile, or lower your ranking. It's not worth the risk.

How to Audit Your Current Practices

If you've been using a review tool or asking for reviews, take a moment to check:

• Are you asking all customers for reviews, or only happy ones? If you're gating, stop.
• Are you offering incentives (discounts, raffles, free items) for reviews? If yes, stop.
• Have you or your team posted reviews under fake names? If yes, report them to Google and remove them.
• Are you responding to negative reviews professionally, without asking customers to delete them? If not, adjust your reply template.
• Does your review tool allow 1–3 star customers to post publicly? If not, switch tools or stop using it.

If you've made mistakes, the best move is to stop the practice now and move forward. The FTC's focus is on ongoing violations, not one-time errors from the past.

This Week

Review your review-request process. If you send emails or texts asking for reviews, read them aloud. Do they hint at wanting only positive reviews? Do they offer anything in return? Rewrite them to be neutral and incentive-free. Then check your review tool's settings. If it gates reviews, disable gating or switch to a tool that doesn't. Finally, draft a response template for negative reviews that thanks the customer, addresses the issue, and avoids arguments. Use it consistently.