Online Marketing

In August 2024, the FTC released its final rules banning fake reviews and testimonials, (CLICK HERE). While the focus of the rules eliminate fake or false reviews and testimonials, (including buying or selling reviews or testimonials), other rules addressed include:

1. Compensation or incentives provided for reviews must not be conditioned on the review itself, (i.e. everyone providing a review must be compensated the same regardless of whether the review is positive or negative).
2. Companies must disclose when the reviews provided do not represent all reviews if some reviews have been suppressed.
3. Companies may not threaten or intimidate customers to prevent or remove negative reviews.
4. Restrictions on reviews from an officer, manager, employee or agent and reviews solicited by these insiders have been imposed.
5. Companies must disclose that controlled websites or entities presenting independent reviews that address their own products or services.
6. Companies may not buy fake followers or views.

While the FTC has yet to announce the potential civil penalties they will seek for violation of these rules, some providers have encountered significant issues for related behavior. A surgeon in Seattle was found in violation of existing FTC regulations (the Federal Consumer Review Fairness Act), by preventing patients from posting negative reviews and requiring illegal NDAs. The state Attorney General also accused the practice “of falsifying online reviews, manipulating before and after images and incentivizing review removal” (CLICK HERE). The physician agreed to enter a consent decree and pay $5 million in fines and restitution.