The Federal Trade Commission (FTC) has sent warning letters to 10 unnamed companies for practices that may allegedly violate its new Consumer Review Rule. The letters flag potential use of fake or misleading reviews, undisclosed insider endorsements, and suppression of negative feedback. The FTC cautions that violations could trigger enforcement actions and civil penalties exceeding $50,000 per violation.

The Consumer Review Rule is intended to protect the credibility of online reviews, ratings, and testimonials by prohibiting deceptive tactics that distort consumer perception. In the warning letters, the FTC highlights prohibited conduct such as generating or purchasing fake reviews; offering incentives only for positive reviews; allowing employees, executives, or related parties to post reviews without clearly disclosing their affiliation; presenting company-controlled sites as independent review platforms; selectively removing or burying negative reviews; and inflating “social proof” with fake followers, likes, or views.

These letters are among the first notable enforcement steps under the rule and mark a shift from education to active oversight. While the recipients are not identified and the letters are not formal findings of a violation, they serve as a clear signal to the broader marketplace: how companies solicit, moderate, and display reviews and endorsements is now a priority enforcement area.

Why It Matters

Any business that collects, curates, or features consumer reviews, star ratings, testimonials, or influencer content should reassess its practices under the Consumer Review Rule. A focused compliance review, covering incentives, insider participation, moderation standards, and handling of negative feedback, can reduce enforcement risk and help maintain consumer trust in the authenticity of online reviews. Companies that act now will be better positioned as the FTC’s enforcement posture continues to evolve.