Trade Regulation Rule on the Use of Consumer Reviews and Testimonials
The Federal Trade Commission ("FTC or "Commission") commences a rulemaking to promulgate a trade regulation rule entitled "Rule on the Use of Consumer Reviews and Testimonials," which would prohibit certain specified unfair or deceptive acts or practices involving consumer reviews or testimonials. The Commission finds such practices to be prevalent based on the comments it received in response to an advance notice of proposed rulemaking and other information discussed in this publication. The Commission now solicits written comment, data, and arguments concerning the utility and scope of the proposed trade regulation rule to prohibit the specified unfair or deceptive acts or practices.
What this rule actually says
The FTC is cracking down on fake reviews and misleading testimonials. The rule targets practices like paying people to post positive reviews without disclosure, using AI to generate fake customer testimonials, manipulating review platforms, and making unsubstantiated claims based on reviews. If a customer says "this saved my life," the company needs to have evidence it actually does that.
Who it applies to
- If you display customer reviews or testimonials anywhere (website, app, marketing materials, social media)—this applies to you, regardless of jurisdiction.
- If you're in the US and selling to US customers, this is enforceable. The FTC has broad authority here.
- If you use AI to generate fake testimonials or reviews, you're directly in the crosshairs. This includes synthetically creating customer feedback.
- If you incentivize reviews without clear disclosure (paying reviewers, offering discounts for five-star reviews), this applies.
- If you use customer data to seed fake reviews (scraping names and attributing fake testimonials to them), this applies.
- If your AI product claims medical/health benefits based on user testimonials, scrutiny is higher—you need real evidence, not just glowing quotes.
This doesn't apply to: internal product feedback you collect for development, completely anonymous feedback without attribution, or your own company statements (not customer testimonials).
What founders need to do
- Audit your marketing materials (1-2 days). Go through your website, demo videos, case studies, and social media. Flag anywhere you're using customer quotes or reviews. Confirm they're real and accurately represent what customers actually said.
- Disclose any review incentives clearly (2-4 hours). If you offer discounts, free access, or payment for reviews, add explicit disclosure near the review or testimonial. Make it obvious you paid for feedback.
- Never use AI-generated testimonials (ongoing). Don't create fake customer names, quotes, or video testimonials using AI tools. This is the main enforcement target.
- Document evidence for any claims (ongoing). If a customer testimonial says your AI "reduces documentation time by 40%," keep that customer's data and results. The FTC will ask for proof.
- Monitor ongoing practices (ongoing). As you collect more reviews and testimonials, vet them before posting. Only use real customer feedback.
Bottom line
If you're displaying real customer testimonials with clear disclosure and no fake reviews, monitor this rule but don't panic; if you're currently using AI-generated fake testimonials or undisclosed paid reviews, stop immediately and audit your marketing.