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Are fake reviews illegal? What a question. Even if they weren’t, stop the lying, people. But, yes, they are illegal.
In October 2024, the Federal Trade Commission (FTC) made it crystal clear: Fake reviews are now illegal. This isn’t just a suggestion or guideline – it’s the law.
“It is against the law to create, purchase, disseminate fake customer reviews, consumer reviews or testimonials,” said Gordon Firemark, an entertainment and media attorney on “The Business Storytelling Podcast.” “That means no using AI to generate reviews or testimonials, no using bots to populate the comments and the rankings and ratings on an Amazon store or Shopify.”
The stakes are high. Companies violating these rules face fines of up to $52,000 per violation. That’s not a typo – each fake review could cost more than some people’s annual salary.
Let’s break down what’s actually illegal
The list shouldn’t be surprising, but here it is, according to Gordon:
- Creating or buying fake reviews
- Using AI to generate reviews
- Using bots for ratings and rankings
- Paying for specific types of reviews (like only positive ones)
- Having employees post reviews without disclosing their connection
- Hiding negative reviews
But what about paying for reviews in general?
That’s where things get interesting.
As someone who regularly reviews products on Amazon and other platforms, I’ve learned there’s a right way and a wrong way. The key is transparency about compensation and maintaining complete editorial independence.
“It’s okay to give somebody a product or to receive the product. It’s okay to actually even have compensation for making a review,” Gordon explained. “What’s not okay is making a review that expresses a specific sentiment or point of view – that being, we’ll pay you for a positive review, but not for a negative review.”
Here’s a real-world example from my own experience: A brand sent me their book for review. I charged my standard rate for my time to review it – not for a positive review. When I discovered the book was clearly AI-generated and poorly done, I told them directly that I’d still do the review, but it wouldn’t be positive. The fee was for my time, not the outcome.
You can accept payment for the work of reviewing, but not for delivering specific sentiments.
Major brands have been following these principles for years. When I worked with Adobe in 2017, their contract explicitly spelled out disclosure requirements. The same was true for other established companies I’ve partnered with – they insist on transparency.
The rules also address insider reviews.
“When somebody from the brand or the company, or someone with that affiliation is making the review, it needs to be disclosed,” Gordon said. This includes cases where you’ve received free products or compensation for the review.
The FTC’s crackdown isn’t theoretical. They’ve already taken action, including a $2.1 million fine against Lyft for misleading ads about driver earnings. This shows they’re serious about enforcement.
Compliance isn’t optional for content creators and marketers. Here’s what you need to do:
- Always disclose compensation or free products
- Make it clear when you have a connection to the company
- Never accept payment for specific review outcomes
- Be honest in your reviews, regardless of compensation
- Keep your editorial independence
Your reputation is at stake.
“If you make a positive review of something that’s crap, and your audience figures out that you can basically just be bought and sold, then your reputation and your value as a reviewer goes down,” Gordon said.
The best approach? Be transparent, honest, and remember that your credibility is worth more than any single review opportunity. The days of fake reviews are over – and that’s good news for everyone except those trying to game the system.
Want to learn more about the legal side of content creation? Check out Gordon Firemark’s webinar series at webinar.easylegalbrands.com.