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The FTC Banned Fake Reviews. Here's How to Spot the Rest

Since October 2024 a federal rule bans fake and bought reviews. It does not make every review honest, so here is what it covers and how to read reviews.

By DealsDMV Team · · 5 min read

Writing, buying or spreading a fake review has been against a federal rule since 21 October 2024. The Federal Trade Commission (FTC) announced the final rule on 14 August 2024, and it covers AI-written reviews and fake celebrity endorsements too. The catch is that the rule can only be enforced against sellers who get caught. It does not clean up the star ratings on the page in front of you, so you still have to read them with your eyes open.

A review is only as honest as the person who wrote it, and a five-star average tells you very little about who that was.

Here is what the rule actually bans, what it leaves alone, and a quick way to read reviews before you buy something you cannot easily return.

What the rule bans

The FTC's announcement lists the practices in plain terms. A business may not do any of these when it knew, or should have known, that the review was fake:

  • Create, sell, buy or spread fake or false consumer reviews and testimonials, including ones made with AI.
  • Offer money or rewards for reviews that say a particular thing, positive or negative.
  • Post reviews from owners, managers or employees without clearly saying who they are. These are called insider reviews.
  • Run a website that claims to be an independent review site when the company actually owns it.
  • Hide bad reviews by using groundless legal threats, intimidation or certain false public accusations.
  • Buy fake social media followers or views to look more popular than you are.

The FTC says courts can order civil penalties against businesses that break the rule knowingly. Its published pages do not give a dollar amount, so I will not guess one.

What the rule does not do

This part surprises people. The FTC's own question-and-answer page is careful about the edges:

SituationWhat the FTC says
A business offers a discount for any honest reviewNot banned, as long as the reward does not depend on whether the review is positive or negative
A business offers payment for five-star reviewsBanned, even if the reviewer discloses the payment
A website only hosts reviews written by customersThe host is generally exempt and has no duty to check each one
A reviewer gives an honest opinion that you disagree withThe rule is about false descriptions of experience, not opinions
A review is featured in the seller's own adsTreated as a testimonial, so the hosting exemption no longer applies

So a page full of reviews is not a certified-honest page. The platform does not have to screen them. The rule's real bite is against the people who make or buy fakes, and finding them takes time.

Red flags the FTC itself points to

The FTC's Q&A names three signs that reviews may not be real:

  1. They show up suspiciously soon after purchase. A reviewer who has barely had time to open the box is worth a second look.
  2. There are many reviews in a short window. A product with almost no history that suddenly collects a pile of reviews is a pattern worth noticing.
  3. They describe the wrong product. If the reviews talk about something the listing does not sell, they were probably pasted from elsewhere.

On top of those, here are some habits I would add. They are my own practical tips, not FTC rules:

  • Read the three-star and four-star reviews first. They tend to be specific about what is good and what is not.
  • Look for details only an owner would know: how long the battery lasted, how the zipper held up, what it was like to assemble.
  • Be wary when every review uses the same phrases or the same photo style.
  • Weigh a pattern of complaints more than a single angry post.

Reading reviews on used and returned items

Secondhand and returned goods add a wrinkle. A review of a new item says how the product performs when it is perfect. A used item can also be tired, missing parts or a grade below its description. When you can, read what a listing says about its condition, check the photos, and compare it with what buyers say. If the listing and the reviews disagree, trust the listing's own details and the return terms over the stars.

For items where safety matters, also run the five-minute check from our guide to checking recalls before buying secondhand. A glowing review of a recalled product is still a recalled product.

If you are shopping in the DC, Maryland and Virginia area, you have an extra advantage most online buyers lack: a lot of things can be looked at in person. You can pick up, power on and inspect an item before you commit. Check the help page for how DealsDMV handles pickup rather than assuming.

What to do if you suspect fake reviews

You do not need to settle the question for the whole internet. You just need to decide whether this purchase is worth the risk. A few options:

  1. Move to a seller whose terms you can read, with a clear way to return the item.
  2. Buy only what you can inspect before paying or with a return window you have read in full.
  3. Pay in a way that gives you recourse. Our piece on how you are asked to pay explains why.
  4. Avoid deals that depend on rushing you. A fake review and a fake countdown clock often come together.

The bottom line

The rule is real, it has been in force since October 2024, and it covers AI-written reviews. That is good news. It does not mean every star rating you see is honest, because host sites are mostly exempt from checking. Read the middle reviews, look for specifics, and put the return terms ahead of the stars.

If this saved you from a bad buy, send it to someone who reads reviews before they click "buy."

Sources

  1. FTC: Federal Trade Commission announces final rule banning fake reviews and testimonials (14 August 2024) (ftc.gov)
  2. FTC: Consumer Reviews and Testimonials Rule questions and answers (ftc.gov)

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