Explainer
The FTC Fake Review Rule Explained for Amazon Shoppers

This is a summary for shoppers, not legal advice.
For years, US enforcement against fake reviews relied on general laws against deception. On October 21, 2024, the FTC's dedicated rule on consumer reviews and testimonials took effect, giving the agency the power to seek civil penalties for each violation (Alston & Bird).
What the FTC Rule Bans
- Fake reviews and testimonials: creating, buying, selling or spreading reviews from people who don't exist, who didn't use the product, or that misrepresent their experience.
- AI-generated fake reviews: covered by the rule, even though the text doesn't mention AI by name.
- Paying for a particular sentiment: offering money or other rewards for positive reviews of your product or negative reviews of a competitor.
- Undisclosed insider reviews: reviews by owners, employees or agents that hide the connection, and asking employees to get reviews from their families.
- Review suppression: using unfounded legal threats, intimidation or false accusations to remove or prevent negative reviews, or presenting a review section as complete when bad reviews have been suppressed.
- Fake "independent" review sites: company-controlled sites presented as independent.
- Fake social media influence: buying or selling fake followers or views for commercial purposes.
Penalties
The FTC can seek civil penalties of up to $53,088 per violation. That is the 2025 inflation-adjusted amount (FTC), which the FTC kept for 2026 rather than adjusting it again (FTC notice, September 2026). Because each fake review can count as a separate violation, a review campaign can add up quickly.
What the Rule Means When You Shop on Amazon
- A card offering a gift card for a 5-star review is a reward conditioned on sentiment. You can report it.
- "Free product for an honest review" programs are a different case; disclosure rules still apply. Amazon runs its own program, Vine, where reviews are labeled.
- Reviews from the brand's staff should disclose the connection.
- The rule doesn't stop every fake. Enforcement takes time, and many review brokers operate outside the US. You still need to check listings yourself; our 9-step guide shows how.
How to Report Fake Reviews
- On Amazon: click "Report" under the review.
- To the FTC: report reward-for-review offers and suspected review fraud at ReportFraud.ftc.gov. The FTC specifically asks people to report brushing packages there (FTC).
- In the UK: fake and concealed incentivized reviews have been banned under the DMCC Act since April 6, 2025, and the CMA can fine businesses up to 10% of global turnover (CMS).
Related Enforcement
Before the rule, the FTC used existing law in cases such as The Bountiful Company, its first review hijacking action, which ended with a $600,000 payment (FTC). Amazon also sues review brokers directly and says it blocked more than 275 million suspected fake reviews in 2024 (Amazon).
Frequently Asked Questions
When did the FTC fake review rule take effect?
What is the penalty for fake reviews in the US?
Does the FTC rule cover AI-generated reviews?
Is it illegal to offer a gift card for a 5-star review?
Sources
- FTC issues final rule on fake reviews and testimonials — Alston & Bird, October 22, 2024
- FTC publishes inflation-adjusted civil penalty amounts for 2025 — Federal Trade Commission, February 2025
- Adjustments to civil penalty amounts (2026 notice) — Federal Trade Commission, Federal Register, September 2026
- An unexpected package you got could be a brushing scam — FTC Consumer Advice, August 20, 2026
- The Bountiful Company (case 222-3019) — Federal Trade Commission
- No more faux five-stars: the DMCC Act bans fake reviews — CMS
- Amazon's latest actions against fake review brokers — Amazon
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