Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 17 FEBRUARY 2022

Zero Stars: FTC And NAD Will Not Permit Consumer Review Suppression

Davis+Gilbert LLP
Davis+Gilbert LLP
Contributor
Davis+Gilbert LLP

Davis+Gilbert LLP

Legal mastery is critical but not enough. Even the best legal strategies must work in tandem with...

View firm profile
Explore more from Davis+Gilbert LLP

The Federal Trade Commission (FTC) is encouraging marketers to evaluate their policies regarding consumer reviews. The Commission's recent efforts — publishing guidelines for marketers,...

United StatesConsumer Protection
Allison Fitzpatrick
Allison Fitzpatrick
Paavana Kumar
Paavana Kumar
Sumi Naidoo
Sumi Naidoo
Author LinkedIn connections

The Bottom Line

  • The FTC's guidance for marketers, online retailers and review platforms emphasizes the need for truthfulness in the collection, moderation and publication of consumer reviews.
  • "Suppression" of negative reviews may qualify as a deceptive practice and alleged "suppressors" could face potentially hefty penalties.
  • Marketers should take care to devise and enforce policies regarding the evaluation of reviews for publication solely on the basis of neutral characteristics.
  • Marketers should also refrain from making unsubstantiated or inaccurate claims about the authenticity or content of reviews.

The Federal Trade Commission (FTC) is encouraging marketers to evaluate their policies regarding consumer reviews. The Commission's recent efforts — publishing guidelines for marketers, issuing warning letters to review-management platforms, and reaching a $4.2 million settlement with retailer Fashion Nova LLC (Fashion Nova) — target review suppression

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

New York City’s Click-to-Cancel Rule: What Businesses Need To Know

New York City has enacted the nation's first municipal click-to-cancel rule, requiring businesses to provide clear disclosures, simple cancellation processes, and advance renewal notices for subscription services. With approximately 30 states already implementing similar regulations and the federal landscape in flux following the FTC's vacated rule, companies now face an increasingly complex patchwork of compliance obligations. The rule takes effect October 1, 2026, and imposes penalties ranging from $525 t
United StatesConsumer Protection
Skadden, Arps, Slate, Meagher & Flom LLP
Skadden, Arps, Slate, Meagher & Flom LLP
Article

Amway To Pay $225 Million Over Alleged False Earnings Claims And Fabricated Sales

The FTC and Washington state secured a record $225 million settlement from Amway and affiliated groups over allegations they misled recruits about earnings potential while pressuring them to buy products with little retail opportunity. The complaint reveals that over three-quarters of U.S. product volume was sold to IBOs themselves rather than retail customers, with fabricated sales reporting masking the recruitment-driven model. The settlement's injunctive provisions establish new standards for earnings cl
United StatesConsumer Protection
Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
Article

FCC Replaces TCPA “Revoke All” Rule: New Category-Specific Opt-Out Rules For Robocalls And Robotexts

The Federal Communications Commission has fundamentally altered how businesses must handle consumer opt-out requests under the Telephone Consumer Protection Act, replacing the broad "revoke all" mandate with a more nuanced, category-specific approach for informational messages. This regulatory shift allows companies to maintain separate consent tracks for different types of non-marketing communications while preserving stricter opt-out requirements for telemarketing messages. The Updated Order introduces ne
United StatesConsumer Protection
Bass, Berry & Sims PLC
Bass, Berry & Sims PLC
Article

FTC Asks Whether Platform Ad Tools Fuel Impersonation Scams

The Federal Trade Commission is exploring whether digital platforms should bear greater responsibility for preventing impersonation ads that falsely pose as legitimate businesses or government agencies. Through an Advance Notice of Proposed Rulemaking, the agency seeks public input on potential amendments to its existing Impersonation Rule, examining how ad-optimization tools and platform practices...
United StatesConsumer Protection
Greenberg Traurig
Greenberg Traurig
Article

The Coming State-Law Litigation Wave Of 2026-27: “Subscription Trap” Class Actions

State-law class actions targeting automatic renewal and subscription practices are accelerating, creating significant litigation risk for companies that rely on recurring revenue models. Recent settlements demonstrate that even technical compliance failures can lead to seven-figure exposure, with California, Illinois, and Virginia statutes driving the most aggressive litigation.
United StatesConsumer Protection
Benesch, Friedlander, Coplan & Aronoff LLP
Benesch, Friedlander, Coplan & Aronoff LLP
Article

NCAA Enjoined From Enforcing New Fifth-Year Eligibility Rule

A federal court has issued a nationwide injunction blocking the NCAA from enforcing its new five-year eligibility rule against Division I athletes who graduated high school in 2022. The ruling creates immediate compliance challenges for athletic departments as they navigate roster management, revenue-sharing caps, and potential penalties while the NCAA appeals the decision.
United StatesConsumer Protection
Buchanan Ingersoll & Rooney
Buchanan Ingersoll & Rooney
Article

CONGRESS FIRES BACK?: New Bill Seeks To Revive Written Consent Rule Under TCPA

Congress has introduced the Stop Spam Calls Act, directing the FCC to revise the definition of prior express written consent under the TCPA to require one-to-one seller consent and logical relevance between sellers and website content. This legislative move comes as the Fifth Circuit questions whether written consent is even required under the TCPA, creating a fascinating tension between congressional intent and judicial interpretation that could reshape telemarketing compliance.
United StatesConsumer Protection
Troutman Amin LLP
Troutman Amin LLP
Article

Virginia’s Initial Draft Of Adult-use Marijuana Regulations – What You Should Know And What Questions Remain

Virginia's Cannabis Control Authority has released its initial draft of adult-use marijuana regulations, outlining application fees, license caps, and the approval process for the state's anticipated July 2027 launch of recreational cannabis sales. While the draft provides crucial details on licensing requirements and ownership restrictions, significant questions remain about the application timeline and evaluation criteria that will determine which entities receive coveted permits.
United StatesConsumer Protection
Foley Hoag LLP
Foley Hoag LLP
Article

California Signs Landmark Online Child Safety Package

California has enacted the nation's most comprehensive online child safety legislation, banning addictive social media features for minors under 16, establishing strict companion chatbot regulations, and imposing enhanced civil penalties for platforms that harm children. Companies operating social media platforms or chatbots accessible to California children must now assess their products, audit features, and prepare compliance programs ahead of the laws' effective dates.
United StatesMedia, Telecoms, IT, Entertainment
Davis+Gilbert LLP
Davis+Gilbert LLP
Article

EU AI Act Guidance Expands AI Disclosure Rules For Advertisers And PR Teams

The European Union's AI Act introduces sweeping transparency requirements for AI-generated content, fundamentally redefining what constitutes a "deep fake" and imposing disclosure obligations that extend far beyond traditional understanding. With enforcement beginning August 2, 2026, companies using AI to create advertising, marketing materials, or public communications must navigate complex compliance requirements that may apply even to organizations with no physical presence in Europe.
European UnionMedia, Telecoms, IT, Entertainment
Davis+Gilbert LLP
Davis+Gilbert LLP
Article

NYC’s “Click To Cancel” Rule Is Now In Effect: What Subscription Businesses Need To Know

New York City has become the first U.S. municipality to enforce its own subscription cancellation requirements, creating a new compliance layer for businesses with NYC subscribers. The rule prohibits unreasonable barriers to cancellation and requires companies that enroll consumers in person to offer online cancellation options. With complaint-driven enforcement, per-violation fines up to $3,500, and restitution measured from the first cancellation attempt, businesses must now navigate city-level regulation
United StatesConsumer Protection
Davis+Gilbert LLP
Davis+Gilbert LLP
Article

FTC Continues Crackdown On Subscription Businesses

The Federal Trade Commission has filed a sweeping complaint against Genesis Tech and related entities, alleging systematic deception in subscription funnels that lure consumers with free or low-cost offers while obscuring auto-renewal terms. The enforcement action signals heightened scrutiny of end-to-end consumer journeys, challenging not just missing disclosures but the overall impression created by quizzes, personalization claims, and pricing language that suggests one-time purchases. What compliance ris
United StatesConsumer Protection
Davis+Gilbert LLP
Davis+Gilbert LLP
Article

California Becomes Second State To Require Disclosure Of Synthetic Performers In Advertising

California joins New York in mandating disclosure when AI-generated synthetic performers appear prominently in advertisements, establishing specific language requirements and broad enforcement mechanisms. The law creates new compliance obligations for advertisers, agencies, and media platforms while introducing nuanced differences from New York's framework. With the January 2027 effective date approaching, businesses must implement tracking systems and disclosure procedures to navigate this expanding regula
United StatesMedia, Telecoms, IT, Entertainment
Davis+Gilbert LLP
Davis+Gilbert LLP
Article

California Poised To Narrow The Reach Of The California Invasion Of Privacy Act

California's Senate Bill 690 represents a pivotal legislative response to the explosion of website-tracking lawsuits under the California Invasion of Privacy Act, specifically targeting claims brought under the pen-register provision that have generated thousands of cases since 2022. While the bill would eliminate private plaintiffs' ability to pursue these particular claims involving digital tracking technologies, it leaves other CIPA provisions intact and raises questions about how the litigation landscap
United StatesPrivacy
Davis+Gilbert LLP
Davis+Gilbert LLP