Are Fake Reviews Illegal?
Understanding the laws, regulations, and penalties surrounding fake reviews
Yes, fake reviews are illegal in the United States and many other countries. The Federal Trade Commission (FTC) has clear regulations prohibiting fake reviews, and both businesses that solicit them and individuals who post them can face significant legal consequences, including fines up to $50,000 per violation.
Federal Trade Commission (FTC) Regulations
The FTC's regulations on endorsements and testimonials explicitly address fake reviews:
What the FTC Prohibits
- Posting reviews for products or services you haven't used
- Creating fake positive reviews for your own business
- Posting negative reviews about competitors
- Paying people to write reviews without disclosure
- Using automated bots to generate fake reviews
- Creating fake reviewer accounts or personas
- Suppressing or removing negative reviews while promoting positive ones
Legal Penalties and Consequences
For Businesses
Companies that engage in fake review practices face serious penalties:
Business Penalties
- FTC fines: Up to $50,948 per violation (as of 2024)
- State penalties: Additional fines under state consumer protection laws
- Civil lawsuits: Competitors can sue for unfair competition
- Reputation damage: Public exposure of fake review schemes
- Platform bans: Removal from Google, Yelp, Amazon, etc.
- Lost consumer trust: Long-term damage to brand credibility
For Individuals
People who write fake reviews can also face consequences:
- Personal fines from the FTC
- Defamation lawsuits if reviews contain false negative statements
- Account bans from review platforms
- Criminal charges in extreme cases involving fraud
- Damage to personal reputation if exposed
Recent FTC Enforcement Actions
The FTC has significantly increased enforcement in recent years:
Notable Cases
Fashion Nova (2022)
Fined $4.2 million for suppressing negative reviews while promoting positive ones, violating consumer protection laws by presenting a misleading picture of customer satisfaction.
Sunday Riley (2019)
Settled charges after employees were directed to post fake positive reviews on Sephora's website, demonstrating the FTC's willingness to pursue coordinated fake review schemes.
Cure Encapsulations (2019)
Fined for paying Amazon reviewers to post fake positive reviews, highlighting that compensation without disclosure violates FTC guidelines.
State-Level Laws
Many states have enacted their own laws prohibiting fake reviews:
California
California's Consumer Review Fairness Act prohibits businesses from using contract provisions that prevent customers from leaving honest reviews. Additional state laws address fake review manipulation.
New York
New York law specifically prohibits fake reviews and allows the Attorney General to pursue companies engaging in deceptive review practices.
Other States
Many other states include fake reviews under their consumer fraud and deceptive business practice statutes, allowing state attorneys general to pursue violators.
International Regulations
European Union
The EU's Unfair Commercial Practices Directive prohibits fake reviews. The Digital Services Act requires platforms to take measures against fake reviews, with substantial penalties for non-compliance.
United Kingdom
The UK's Competition and Markets Authority (CMA) actively investigates fake review schemes. Companies can face significant fines and enforcement actions.
Other Countries
Canada, Australia, and many other developed nations have consumer protection laws that prohibit fake reviews as deceptive marketing practices.
What Constitutes a "Fake" Review?
Types of Illegal Reviews
- Non-customer reviews: Reviews from people who never used the product/service
- Compensated reviews without disclosure: Paid reviews that don't reveal compensation
- Competitor sabotage: Negative reviews posted by business rivals
- Employee reviews: Staff posting reviews without disclosure of employment
- Automated/bot reviews: Computer-generated fake reviews
- Review swapping: Trading reviews with other businesses
- Purchased reviews: Buying reviews from review farms or services
Legal vs. Illegal Review Practices
Legal Practices
These review practices are legal when done properly:
- Asking customers to leave honest reviews
- Sending review request emails to verified customers
- Providing easy access to review platforms
- Thanking customers who leave reviews
- Responding professionally to all reviews
- Flagging reviews that violate platform policies
- Offering all customers equal opportunity to review
Illegal Practices
These practices violate FTC regulations:
- Only asking happy customers to review (review gating)
- Paying for positive reviews without disclosure
- Posting reviews yourself or through employees without disclosure
- Hiring services to post fake reviews
- Selectively publishing only positive reviews on your website
- Preventing or suppressing negative reviews
Platform Policies and Enforcement
Review platforms have their own policies aligned with legal requirements:
Platform Actions
- Detection algorithms: Automated systems identify suspicious review patterns
- Account bans: Permanent removal of businesses caught manipulating reviews
- Review removal: Deletion of confirmed fake reviews
- Warnings and penalties: Restrictions on businesses with suspicious activity
- Cooperation with authorities: Platforms report illegal activity to the FTC
How to Report Illegal Fake Reviews
Report to the FTC
If you encounter fake reviews, you can report them to the FTC at ReportFraud.ftc.gov. Provide detailed information about the fake review scheme, including screenshots and evidence.
Report to Platforms
Flag suspicious reviews on the platform where they appear. Most platforms have reporting mechanisms for fake or manipulated reviews.
Report to State Attorneys General
Many state attorneys general have consumer protection divisions that investigate fake review schemes affecting consumers in their states.
Protecting Your Business
If you're a victim of fake negative reviews:
- Document all evidence of fake reviews
- Report to platform following their specific procedures
- File FTC complaints if you suspect coordinated campaigns
- Consult an attorney about potential defamation claims
- Focus on generating legitimate positive reviews
- Never retaliate with your own fake reviews
Compliance Best Practices
To ensure your review practices comply with the law:
Legal Compliance Checklist
- Never pay for reviews without clear disclosure
- Don't gate reviews based on rating or sentiment
- Allow all customers equal opportunity to review
- Disclose any relationships with reviewers
- Don't write reviews for your own business
- Train employees on FTC compliance
- Monitor and audit your review practices regularly
Related Resources
Legal Help with Fake Reviews
If you're dealing with fake reviews affecting your business, our team can help you navigate platform removal processes and document evidence for potential legal action, all while ensuring your own practices remain compliant with FTC regulations.
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