FTC Cracks Down On Insider Reviews: A New Era Of Transparency In Digital Commerce

In the realm of digital commerce, the line between authenticity and artifice has grown perilously thin. The Federal Trade Commission, vigilant guardian of consumer interests, has issued a stern warning to businesses regarding the insidious practice of insider reviews. On December 22, 2025, the FTC dispatched warning letters to numerous companies, cautioning them against potential violations of the Consumer Review Rule, a regulation designed to prohibit deceptive or unfair conduct related to the use of product reviews in advertising and marketing.

This rule, a bulwark against the manipulation of consumer opinion, has been a cornerstone of the FTC’s efforts to maintain transparency in the digital marketplace. The warning letters, a harbinger of enforcement actions to come, underscore the agency’s commitment to policing the gray areas of online commerce. Companies found in violation of the Consumer Review Rule may face civil penalties of up to $53,088 per violation, as well as consumer redress and other remedial measures.

The FTC’s scrutiny extends to the murky world of incentivized reviews, where the boundaries between genuine feedback and manufactured endorsement are often blurred. Yet, as the agency is at pains to clarify, not all solicitations are created equal.