FTC Issues Final Rule on Consumer Reviews and Testimonials

The FTC recently issued a final rule on certain unfair or deceptive acts or practices related to consumer reviews or testimonials.

The final rule generally prohibits businesses from, among other things:

• Writing, creating, selling, disseminating, or purchasing fake or false celebrity testimonials, or fake or false consumer reviews or testimonials;
• Compensating or incentivizing specifically a positive or negative consumer review;
• Creating, disseminating, or demanding undisclosed insider consumer reviews and consumer testimonials, such as those from employees of the business;
• Representing falsely that company-controlled review or opinion websites or entities are independent;
• Suppressing consumer reviews, such as through prevention tactics or misrepresenting the failure to display certain reviews; and
• Selling, distributing, purchasing, or procuring fake indicators of social media influence for a commercial purpose.

The effective date of the final rule is October 21, 2024.