FTC Sends Warning Letters to Ten Companies Over Potential Consumer Review Rule Violations

USA: FTC Sends Warning Letters to Ten Companies Over Potential Consumer Review Rule Violations

Ten companies received warning letters from the Federal Trade Commission (FTC) in December 2025, alerting them to possible breaches of the agency’s Consumer Review Rule. The FTC, a U.S. federal agency, initiated the outreach after reviewing consumer complaints and information supplied by the firms. The letters cite concerns that the businesses may have engaged in deceptive or unfair practices involving product reviews used in advertising. According to the FTC, the rule is intended to protect shoppers who rely on online reviews to make informed purchasing decisions, especially during peak shopping periods.

Scope of the Consumer Review Rule

The Consumer Review Rule prohibits a range of practices, including misrepresenting whether a reviewer’s experience was positive or negative, claiming that a reviewer used a product when they did not, and conditioning compensation on a specific sentiment. It also requires clear disclosure when reviews are written by company insiders, immediate relatives, or individuals receiving incentives. Additional provisions address company‑controlled review sites, the suppression of unfavorable reviews, and the misuse of social‑media influence metrics such as follower counts.

Potential Penalties

While the letters are not formal determinations of wrongdoing, they remind recipients that violations can trigger civil penalties of up to $53,088 per infraction. The FTC notes that repeated or egregious breaches could lead to federal lawsuits or other legal actions. Enforcement actions under the rule aim to deter deceptive review practices and uphold market integrity.

Companies’ Response and Next Steps

The ten firms have not publicly commented on the FTC’s correspondence. The agency indicated that the letters were based on specific consumer complaints and that the companies are expected to review their review‑management policies. The FTC advises businesses to conduct internal audits, ensure proper disclosures, and refrain from linking compensation to review sentiment.

Consumer Impact

Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, emphasized that “Fake or false consumer reviews are detrimental to consumers’ ability to make accurate and informed choices about the products they are buying – something of particular importance during the holiday season.” The agency’s outreach underscores its commitment to safeguarding the reliability of online reviews, which many shoppers depend on for purchasing decisions.

Regulatory Context

The Consumer Review Rule is part of a broader FTC effort to combat deceptive marketing practices across digital platforms. By targeting undisclosed incentives and misrepresentations in reviews, the agency seeks to align online advertising standards with existing consumer‑protection laws. The rule complements other FTC initiatives aimed at increasing transparency in e‑commerce and digital advertising.

This report is based on information from Federal Trade Commission, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.