FTC Fake Review Regulations: What Consumers Need to Know in 2025

The Federal Trade Commission (FTC) has significantly strengthened its enforcement against fake reviews. In August 2024, the FTC finalized new rules specifically targeting fake reviews and testimonials, making it crucial for consumers to understand their rights and how these regulations protect them.

The FTC's New Fake Review Rule (2024)

On August 14, 2024, the FTC unanimously approved a final rule that prohibits fake reviews and testimonials. This rule, published in the Federal Register on August 22, 2024, represents the most comprehensive federal action against review fraud to date.

According to the official FTC announcement, the rule "prohibits the buying, selling, or creation of fake reviews, testimonials, or celebrity endorsements." The rule became effective on October 21, 2024, giving the FTC direct authority to seek civil penalties against violators.

What the Rule Specifically Prohibits

The FTC's final rule addresses multiple forms of review manipulation that consumers should be aware of:

1. Fake or False Consumer Reviews

The rule prohibits creating or selling reviews by people who don't exist or who haven't actually used the product. This includes AI-generated reviews and reviews from people who were never actual customers. The FTC specifically noted that "reviews generated by artificial intelligence are covered by this provision."

2. Buying Positive or Negative Reviews

Businesses cannot purchase positive reviews for their own products or negative reviews for competitors. This applies regardless of whether the reviewer discloses the payment. The FTC's position is clear: purchased reviews inherently misrepresent genuine consumer experience.

3. Insider Reviews Without Disclosure

Company officers, managers, employees, and their immediate relatives must clearly disclose their relationship when leaving reviews. The rule also covers agents acting on behalf of the business. A review from a company employee that doesn't disclose that relationship violates FTC rules.

4. Review Hijacking

The practice of repurposing reviews from one product to a materially different product is now explicitly prohibited. This addresses the common tactic of transferring positive reviews when changing a product listing to an entirely different item.

5. Suppressing Negative Reviews

Businesses cannot use unfounded legal threats, physical threats, or intimidation to prevent or remove negative reviews. They also cannot use contract terms that prohibit honest negative reviews (often called "gag clauses").

Recent FTC Enforcement Actions

The FTC has actively pursued fake review cases even before the new rule. Understanding these cases helps illustrate how seriously regulators treat review fraud:

FTC v. Roomster Corp. (2023)

The FTC sued apartment listing platform Roomster for purchasing over 20,000 fake reviews to inflate its app store ratings. According to the FTC complaint, Roomster paid a third party to post fake reviews and used deceptive tactics to manipulate its ratings from under 3 stars to 4.8 stars. The case resulted in a settlement requiring Roomster to stop the practices and potentially pay consumer redress.

Sunday Riley Cosmetics (2019)

The FTC found that Sunday Riley employees, at the direction of company leadership, posted fake reviews on Sephora's website. Employees used VPNs to avoid detection and were instructed to write reviews that would "ichrive to sound authentic." This case established precedent that company-directed fake reviews are serious violations.

Fashion Nova (2022)

Fashion Nova paid $4.2 million to settle charges it blocked negative reviews from appearing on its website. The FTC alleged the company used a third-party review management service to suppress reviews with ratings below four stars, misleading consumers about customer satisfaction.

How to Report Fake Reviews to the FTC

Consumers who encounter fake reviews can report them to the FTC through multiple channels:

1. ReportFraud.ftc.gov: The FTC's primary reporting portal for all types of fraud, including fake reviews
2. FTC Complaint Assistant: Available at ftc.gov/complaint for detailed submissions
3. State Attorney General: Many state AGs also investigate fake review schemes

When reporting, include as much detail as possible: product names, seller information, specific review text, and any evidence of manipulation you've observed. Screenshots with dates are particularly valuable.

State-Level Regulations

Beyond federal regulations, several states have enacted their own laws targeting fake reviews:

California: The False Advertising Law and Unfair Competition Law both apply to fake reviews, with the California Attorney General actively pursuing cases.

New York: Has pursued fake review cases under consumer protection statutes, including a landmark case against businesses paying for fake Yelp reviews.

Washington: The Consumer Protection Act explicitly covers deceptive reviews, and the state has pursued multiple cases.

What This Means for Amazon Shoppers

While FTC regulations primarily target sellers and platforms, they provide important protections for consumers:

• Fake review operations face real financial consequences, reducing their prevalence
• Platforms are incentivized to improve detection and removal of fake reviews
• Consumers have reporting mechanisms that can trigger investigations
• Legitimate businesses have more protection from unfair competitors

However, regulation alone doesn't eliminate fake reviews. The FTC acknowledges that enforcement resources are limited and sophisticated operations continue to evade detection. That's why consumer tools like Null Fake remain essential for protecting yourself.

Industry Response and Platform Policies

Major platforms have updated their policies in response to regulatory pressure:

Amazon: Updated its Community Guidelines to explicitly reference FTC requirements and enhanced automated detection systems. Amazon reports removing hundreds of millions of fake reviews annually.

Google: Increased penalties for fake review operations and implemented AI-powered detection for Maps and Shopping reviews.

Yelp: Maintains strict policies against solicited reviews and operates a Consumer Alert program that warns users about businesses suspected of review manipulation.

The Honest Limitations

While FTC regulations are important, they have limitations:

• Enforcement is reactive, not proactive — scammers often profit before being caught
• International fake review operations are difficult to reach with U.S. law
• Sophisticated manipulation that mimics organic behavior is hard to prove
• Limited FTC resources mean only the most egregious cases get pursued

The best protection combines regulatory enforcement with consumer awareness and tools that detect manipulation patterns. Use multiple verification methods, stay skeptical of perfect ratings, and report suspicious activity when you encounter it.

Key Takeaways