ReviewProof · Small business

FTC fake-reviews & endorsements for small businesses: does it apply to you?

The FTC's fake-reviews rule bans fake/AI reviews, bought followers, undisclosed influencers, and review suppression.

Does business size change anything?

📐 The honest answer: The FTC's fake-review and endorsement rules apply to businesses of any size — a small shop that seeds reviews or doesn't disclose gifted products is squarely in scope.

What it requires

If it applies to you, here's what you need — these are the points small businesses most often miss:

What's at stake

⚠️ Exposure: up to $53,088 per violation (FTC) · Status: Since Oct 2024. Regulators and plaintiffs do go after small businesses — being small is not a defence.

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Common questions

Does fTC fake-reviews & endorsements apply to small businesses?

The FTC's fake-review and endorsement rules apply to businesses of any size — a small shop that seeds reviews or doesn't disclose gifted products is squarely in scope.

Are fake reviews illegal?

Yes — the FTC's rule (16 CFR Part 465, effective Oct 2024) bans fake or AI-written reviews, bought engagement, undisclosed insider reviews, and review suppression, with penalties up to about $53,088 per violation.

Do influencers have to disclose paid posts?

Yes — any material connection (payment, free product, or affiliate commission) must be disclosed clearly and conspicuously.

Can I delete negative reviews?

You can't deceptively suppress or threaten over honest negative reviews. Removing genuine criticism to mislead shoppers is prohibited.

The source

RuleGoose checks this against the FTC reviews rule (16 CFR Part 465) + Endorsement Guides. Read it yourself: eCFR — 16 CFR Part 465 →

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or read the full FTC fake-reviews & endorsements guide, or get one RuleGoose Score across every rule.

Informational only, not legal advice, and not affiliated with the FTC. Thresholds can change and be fact-specific — confirm against the cited source. Last reviewed 2026-06-30.