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Fake review law in the United States, and what it means for your business

By ReputationKiln Editorial · Published

The United States got its first dedicated fake-review rule in October 2024, when the Federal Trade Commission's rule on consumer reviews and testimonials came into force. It bans creating, buying or selling fake or AI-generated reviews, paying for reviews conditioned on a particular sentiment, undisclosed insider reviews from staff or their relatives, running a company-controlled site dressed up as independent, suppressing honest reviews through threats or intimidation, and buying fake followers or other social indicators. It applies a "knew or should have known" standard, so it reaches the business that buys, not only the seller, with civil penalties up to tens of thousands of dollars per violation.

There is one structural catch worth knowing up front. A separate law shields platforms from liability for what their users post, so when a fake review hits you, you generally pursue the reviewer, not the platform, and a judgment against the reviewer is then what gets the content taken down.

Who enforces it, and the record

The FTC enforces the rule and can also win refunds for consumers, though only the FTC can bring a case under it, not a private individual. Its first enforcement step under the new rule came in December 2025 with warning letters to ten companies, and it has continued to bring related cases, including against a telehealth seller in 2025 for fake reviews alongside deceptive claims. Separately, a long-running line of major-retailer lawsuits has pursued the brokers who sell fake reviews, and a 2016 contract-law statute voids any small-print term that tries to gag or penalise honest customer reviews.

What it means for you, and the limit

The practical reading: buying reviews is now a federal risk that lands on you, and the cases that have actually been brought landed the penalty on the business, not on a faceless broker. If a competitor is faking, the rule gives you and state attorneys general a basis to act. The limit is the platform-immunity catch above, plus uneven enforcement, so the rule changes the incentives but rarely removes one fake review aimed at you overnight. The recourse page covers what to do in the moment.

  1. The FTC rule bans fake, AI-generated, insider and suppressed reviews and buying fake social indicators; in force 21 October 2024; up to $53,088 per violation in 2025. — FTC Rule, 16 CFR Part 465. https://www.ftc.gov/legal-library/browse/federal-register-notices/16-cfr-part-465-trade-regulation-rule-use-consumer-reviews-testimonials-final-rule · checked 2026-06-04
  2. Section 230 generally shields platforms from liability for user-posted reviews, so a business pursues the reviewer. — Communications Decency Act, Section 230. https://www.law.cornell.edu/uscode/text/47/230 · checked 2026-06-04