FTC Guide Consumer Reviews and Testimonials Rule: Questions and Answers (November 2024)

The Federal Trade Commission (“FTC”) released a Questions and Answers guide for businesses to discuss the newly implemented new rule on consumer reviews and testimonials, that took effect on October 21, 2024, which aims to curb deceptive practices related to fake or misleading reviews. This rule addresses issues such as the manipulation of consumer feedback, which has become problematic for both consumers and honest businesses. It allows courts to impose civil penalties on businesses that knowingly violate the rule. The FTC highlights how fake reviews harm consumers who depend on them for decision-making and undermine competitors who follow the law.

The rule covers several key areas, including the prohibition of false consumer reviews, the buying of positive or negative reviews, and the use of insider reviews. It also addresses company-controlled review websites, review suppression, and the misuse of fake social media influence indicators. While the FTC's guidance helps businesses understand the rule, it emphasizes that these answers are not definitive and depend on specific circumstances. The guidance does not provide a safe harbor from potential legal issues.

 

For more information, see here:  https://www.ftc.gov/business-guidance/resources/consumer-reviews-testimonials-rule-questions-answers

 

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