Online reviews, related testimonials, and endorsements provide a powerful way for businesses of all types to grow by showing firsthand how others have been satisfied with their products or services. As is standard, with such effective business growth strategies, there comes the risk of abuse, and regulators and lawmakers are increasingly putting guardrails in place to, in their view, protect consumers. Currently, there are laws on the international, federal, state, and regulator-specific levels that come into play when analyzing online reviews. The Federal Trade Commission (FTC), sector-specific regulators such as the Securities Exchange Commission (SEC), the Consumer Financial Protection Bureau (CFPB), and state attorneys general are all active in regulating online reviews. Previously, the focus was on proper transparency through disclosures for influencer marketing and related activities, but now a complex landscape is emerging around the legal compliance obligations that must be followed in the context of online reviews and testimonials. We understand the importance of online reviews and help clients navigate the dynamic landscape.
FTC Compliance and Review Guidelines
Complying with the FTC regulations under the FTC Act, including the latest rules on fake reviews and testimonials, is essential as the regulator is increasingly active in enforcing online review practices it views as “unfair and/or deceptive.”
Endorsement and Influencer Marketing Compliance
In our influencer marketing, endorsements such as from celebrities, and affiliate marketing practices, including as it relates to specific sectors such as RIAs, there is significant overlap with online review laws, and we help clients on both the brand and influencers, endorsers, and affiliates comply, including with proper disclosure practices and review of influencer and related endorser or affiliate agreements to mitigate legal risks.
AI and Online Reviews
As artificial intelligence increasingly intersects with online reviews, we help businesses understand the legal implications. We advise on compliance with FTC actions like the recent case against Sitejabber, ensuring your AI-enabled review platforms collect and display truthful and accurate customer feedback.
Comprehensive Review Management
Our services extend beyond traditional compliance, addressing less obvious prohibitions such as review suppression and selective display of positive reviews. We help you implement fair and transparent review practices that build trust with consumers and regulators alike. We also assist in developing clear and conspicuous disclosure practices for reviews by company insiders or interested parties, ensuring compliance with material connection requirements and avoiding pitfalls arising from the purchase of fake social media indicators.
Incentive Programs and Sweepstakes
We provide guidance on structuring legally compliant incentive programs for reviews, including sweepstakes legal considerations, ensuring your promotional activities adhere to all relevant laws, such as requirements for Alternate Methods of Entry (AMOE).
Platform Compliance and Risk Mitigation
In addition to complying with the “letter of the law,” we help you navigate the policies of major app stores and online marketplaces, such as for Amazon sellers, to avoid penalties, suspensions, or legal action resulting from review practices. Our proactive approach helps protect your business presence on these crucial platforms.
Consumer Review Protection
Online review laws have an ancillary application to a business’s terms and conditions. Specifically, laws like the Consumer Review Fairness Act and state-specific laws, such as those in California (Civil Code 1670.8 and referred to as the “Yelp Law”), protect consumers’ rights to leave reviews. We help you draft terms that respect these rights and avoid potential class action lawsuits that weaponize these online review laws against unassuming businesses.
By working with RICHT, you gain access to comprehensive legal insights in the rapidly evolving field of online reviews and broader areas involving e-commerce and technology. We work diligently to protect your reputation, ensure regulatory compliance, and mitigate legal risks in the digital marketplace.
Contact us today to learn how we can safeguard your business in the world of online reviews and testimonials.
Our Latest Marketing Law Insights
Recent Online Review Legal Developments
- NAD Revives “Review Hijacking” Concept Dropped from FTC Rulemaking: The National Advertising Division (NAD) has effectively revived the “review hijacking” concept, previously dropped from the FTC’s final rule, by recommending that an advertiser stop combining ratings for substantially different products. This decision signals that self-regulatory bodies will enforce truth-in-advertising principles against misleading review consolidation even without explicit FTC definitions. OUR TAKEAWAY: Advertisers should proactively audit product listings to ensure reviews are not automatically carried over between substantially different formulations and maintain documentation justifying shared reviews to mitigate challenge risks. Read More →
- FTC Warns 10 Companies Over Fake Review Rule: The Federal Trade Commission has issued warning letters to 10 companies regarding potential violations of its new Consumer Review Rule, which prohibits deceptive practices such as fabricating reviews, suppressing negative feedback, and failing to disclose insider testimonials. This enforcement action highlights the agency’s crackdown on “fake or false” reviews that distort consumer choice, particularly during high-volume shopping seasons, and serves as a reminder that violations can now trigger civil penalties of up to $53,088 per infraction. Read More →
- Small Businesses Face Extortion Over Fake Google Reviews:
A growing wave of scammers is targeting small businesses—like movers, contractors, and roofers—by flooding their Google Maps listings with fake one-star reviews, then demanding payment to stop or remove them. Victims report reputational damage and plunging star ratings overnight, with perpetrators often contacting them via WhatsApp from abroad. Despite removing some fraudulent reviews, Google’s systems frequently leave small firms vulnerable, offering no direct support line. The scams highlight ongoing weaknesses in online trust systems and the immense pressure small businesses face when platform abuse goes unchecked.
Read More → - FTC Order Requires Online Marketer to Pay $1 Million for Deceptive Claims that its AI Product Could Make Websites Compliant with Accessibility Guidelines (Company also failed to disclose material connections to online reviewers)
- CFPB Issues Policy on Contractual ‘Gag’ Clauses and Fake Review Fraud
- FTC, State Partners Secure Proposed Order Banning Roomster and Owners from Using Deceptive Reviews
- FTC Fines Fashion Company $4.2 Million for Blocking Negative Customer Reviews