Reviews are one of the most powerful local marketing assets you have. They influence who customers call, how you rank in the map pack and, increasingly, what AI search tools say about you. That power is exactly why the Federal Trade Commission stepped in.
In August 2024, the FTC announced a final rule banning fake and deceptive reviews and testimonials. It took effect in October 2024, and it gives the agency the ability to seek civil penalties against businesses that knowingly break it. If you run a local business, here’s what you need to know — without the legalese.
What the rule prohibits
- Fake reviews and testimonials. Writing, buying or selling reviews from people who don’t exist or never used your product or service — including AI-generated reviews.
- Paying for positive (or negative) sentiment. You can’t offer something in exchange for a review that’s conditioned on it being positive.
- Undisclosed insider reviews. Reviews from owners, managers or employees — or solicited from their relatives — without clearly disclosing the connection.
- Company-controlled “review” sites that pretend to be independent.
- Review suppression. Using threats, intimidation or false accusations to get negative reviews removed, or hiding negative reviews while implying you show them all.
- Fake social influence. Buying bot followers or fake engagement to look more popular for commercial purposes.
What you can still do (and should)
Nothing in the rule stops you from asking real customers for honest reviews. In fact, a steady, consistent request process is the single best way to grow your rating. You can:
- Ask every customer for a review after a job, visit or purchase.
- Send a direct link by text or email so it takes 30 seconds.
- Respond to every review — positive and negative — professionally.
- Feature real reviews on your website, with the customer’s permission.
The key is to ask everyone, not just the customers you expect to be happy, and to never tie a reward to a positive rating.
Watch out for “review gating”
Some review tools send happy customers to Google and route unhappy ones to a private feedback form. It feels harmless, but it can misrepresent your overall customer experience, and Google’s own policies discourage selectively soliciting positive reviews. A cleaner approach: invite everyone to leave a public review, and offer a separate way to reach you directly if something went wrong.
Incentives and creators
If you offer a discount or giveaway for leaving a review, it must not depend on the review being positive — and platform rules may still prohibit it, so check each site’s policy. When you work with influencers or creators, their posts are endorsements, and the material connection (payment, free product, discounts) must be clearly disclosed. We break that down in FTC Rules for Influencer Partnerships.
A compliant review engine in four steps
- Trigger: send the request automatically when the job or visit is complete.
- Make it easy: one tap to your Google review page; mobile-first.
- Follow up once: a gentle reminder two or three days later.
- Respond fast: reply to every review within a couple of business days.
Why this is good news for honest businesses
Fake reviews used to let some competitors buy their way to the top. Stronger enforcement levels the field for businesses that earn their reputation. If you want a review program that grows your rating without risk, our local SEO team builds them for businesses across The Woodlands and Houston — start with a free marketing audit.
This article is general information, not legal advice. For questions about your specific situation, talk to an attorney.