A contractor finishes a renovation and sends the homeowner a thank-you message: “Leave us a five-star review and receive $25 off your next service call.” The customer is happy, the work was completed, and the discount seems like a reasonable way to encourage feedback.
That offer creates a legal problem. A business cannot condition a review incentive on the customer giving it a favorable rating.
The Federal Trade Commission’s Consumer Reviews and Testimonials Rule, effective October 21, 2024, prohibits businesses from offering compensation or other incentives in exchange for reviews expressing a particular sentiment. The prohibition covers both express conditions and implied ones. A gift card, discount, or free service can qualify just as readily as cash.
The wording matters. Removing “five-star” does not necessarily fix the offer. A message asking customers to describe their wonderful experience in exchange for a coupon can still imply that the reward depends on praise. The practical question is whether the customer understands that a positive review is the price of receiving the benefit.
Disclosing the reward does not solve the problem. According to the FTC’s guidance, paying for a five-star review violates the rule even when the reviewer tells readers about the incentive. Disclosure does not make a prohibited arrangement permissible.
An incentive for honest feedback, regardless of whether the review is positive or negative, requires a different analysis. The FTC rule does not categorically prohibit that arrangement. But failing to disclose the incentive can violate the FTC Act, and the review platform may impose stricter requirements. Google Maps, for example, prohibits businesses from offering payment, discounts, or free goods or services in exchange for any review. A neutral offer can therefore create a platform-policy problem even if it avoids the rule’s prohibition on buying favorable reviews.
The FTC’s 2026 action involving TruHeight illustrates why businesses should pay attention. The agency alleged that the supplement company used reviews written by insiders and offered consumers free products or discounts for five-star reviews. The final consent order, announced July 15, prohibits incentives conditioned on positive or negative reviews, among other restrictions. The settlement resolved allegations; the company and its principals did not admit the alleged violations.
For business owners, the practical starting point is the actual request customers receive. Review the text messages, follow-up emails, invoice inserts, and instructions employees use when asking for feedback. A well-intentioned employee can introduce a reward or suggested rating that management never approved.
A straightforward request is often enough: “Thank you for choosing our company. We welcome an honest review of your experience.” Make the request without offering a benefit or directing the customer toward a particular rating. Apply a consistent process rather than screening for praise; Google also prohibits selectively soliciting positive reviews.
If an outside marketing company manages reviews, ask to see its customer messages and understand its methods. Find out whether it offers incentives, suggests ratings, or promises a particular number of positive reviews. Those questions help an owner assess the campaign before a problem develops.
Online reviews can help a business earn trust and win work. A sensible review program makes it easy for customers to describe their experience and leaves them free to decide what to say.
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