AI and Online Reviews: What the FTC Rule Means for You

Good reviews bring in new customers, and getting them the honest way works best. Here's a plain-English starting point from the Federal Trade Commission (FTC), from its official pages checked on Oct 28, 2026.

The basics: the FTC's Rule on the Use of Consumer Reviews and Testimonials went into effect on October 21, 2024.

What the rule covers, per the FTC:

• Fake reviews: reviews or testimonials by someone who doesn't exist, such as AI-generated fake reviews, or by someone who never used the business. Businesses can't create, sell, or buy them.
• Paying for a certain opinion: businesses can't offer rewards only for positive (or negative) reviews.
• Insider reviews: reviews by owners, managers, or staff need to clearly disclose the connection.
• Fake review sites: a business can't pretend a site it controls is independent.
• Hiding bad reviews: a business can't use threats to remove negative reviews, or pretend its site shows all reviews when it hides some.
• Fake followers: no buying or selling fake followers or views.

Simple habits for small businesses (our suggestions):

• Ask everyone: invite all customers to leave a review, not only happy ones.
• Use AI for replies, not reviews: AI can help you draft thoughtful replies, but reviews should come from real customers.
• Be upfront: if a friend or employee reviews you, they say so.

Want help replying? See our review replies playbook.

A friendly note: this lesson is a starting point for learning, not legal advice. The FTC's official pages and a lawyer are great next steps for your situation.

A small-business example: a family restaurant wants more reviews. Instead of offering a free dessert for a five-star review, the owner prints a small card for every table: "Tell us how we did on Google or Yelp." Every guest gets the same card, happy or not. When a two-star review mentions slow service, the owner uses AI to draft a calm reply, edits it to sound like herself, and thanks the guest. (Our illustration.)

Questions to ask yourself:

• Are we asking all customers, or only the happy ones?
• Do our staff, friends, or family review us? If so, do they say who they are?
• Are we rewarding a certain star rating? The FTC rule covers rewards tied to positive or negative reviews.
• Do our testimonials come from real customers who really used us?

Good uses of AI with reviews:

• Draft replies to reviews, then edit them in your own words.
• Summarize what reviews say most often, so you can fix it.
• Write a friendly, neutral request asking customers for honest feedback.

Myth or fact?

• "Using AI to reply to reviews is against the rule." Myth. The rule is about fake or misleading reviews, not your replies.
• "An employee can post a review without saying they work here." Myth. The FTC says insider reviews need a clear disclosure.
• "Asking every customer for a review is fine." Fact. It's a good habit.