How the FTC’s New Review Policy Impacts Local SEO and What Businesses Need to Do to Stay Compliant

The FTC’s recent ruling on fake reviews marks a pivotal change for businesses relying on online reviews to boost their visibility and credibility. With hefty penalties in place, here’s how the new regulation affects local SEO and steps businesses should take to stay compliant.

Why the New FTC Review Rule Matters

The FTC’s regulation, effective as of October 21, targets deceptive review practices that can mislead consumers and give dishonest businesses an unfair advantage. According to FTC Chair Lina Khan, this policy intends to eliminate fake reviews that pollute the marketplace and mislead potential customers. Non-compliance can cost businesses up to $50,120 per violation, so this change should be taken seriously by any company with an online presence.

What’s Prohibited Under the New Policy

The FTC’s rule bans several practices common in online reviews, including:

Fake reviews: AI-generated or otherwise fraudulent reviews.

Paid reviews: Reviews that are bought or incentivized, either positive or negative.

Insider reviews: Reviews from employees, family, or affiliates.

Review suppression: Threatening customers to prevent negative reviews.

Fake social proof: Buying followers or views for artificial influence.

Notable Enforcement Cases

Cases like Fashion Nova’s $4.2 million fine for suppressing negative reviews highlight the FTC’s commitment to enforcement. Roomster, a rental listing platform, was similarly penalized for using fake reviews to inflate their reputation, demonstrating that these policies are more than just guidelines—they’re actionable rules with significant consequences.

Steps to Ensure Compliance

1. Review Practices Audit (Days 1-15)

Audit current review collection methods across all platforms.

Identify and document any non-compliant practices for removal or revision.

2. Develop Compliant Procedures (Days 16-30)

Create clear and compliant review request templates.

Establish a system to document requests, ensuring transparency and accountability.

3. Staff Training (Days 31-45)

Educate staff on new practices, emphasizing the value of genuine feedback.

Ensure that customer interactions encourage honest feedback, not incentivized reviews.

4. Monitor and Adjust (Days 46-60)

Continuously review new practices and adjust as needed.

Look for patterns in review language and frequency to avoid triggering FTC scrutiny.

Impact on Google Business Profile Management

With these new rules, a well-maintained Google Business Profile (GBP) becomes even more valuable. For local businesses, collecting genuine reviews and responding thoughtfully are key for SEO and compliance. Here are some examples:

Compliant Review Request

“Thank you for your business! If you’d like to share your experience, we’d appreciate an honest review on our Google Business Profile. Your feedback helps others make informed decisions.”

Non-Compliant Review Request

“Leave us a 5-star review for 10% off your next service!” (This is now explicitly prohibited.)

Response Examples

Positive Review: “Thank you, [Name]! We’re thrilled to hear you enjoyed [specific service]. Hope to serve you again soon!”

Negative Review: “[Name], thank you for your honest feedback. We’re sorry to hear about your experience and would like to address your concerns. Please reach out to us at [contact method] to discuss further.”

SEO Implications of the FTC’s Policy

The FTC’s rule aligns with Google’s preference for authentic reviews, with implications for local search rankings:

Genuine Engagement: The quality of reviews will now have more weight than quantity.

Improved Algorithms: Google’s algorithms increasingly detect fake review patterns, making compliance not only safer but also more beneficial to ranking.

Increased Competition in Local Pack: As more businesses shift to quality reviews, SEO competition may increase, pushing companies to focus on genuine service and customer interaction.

Building a Sustainable Review Strategy

True compliance involves creating a culture of genuine feedback. Here’s how:

Training and Communication

Educate your team on the FTC policy and why authentic reviews matter. When staff understands the purpose, they can naturally encourage honest feedback.

Optimize Review Request Timing

Request reviews during natural customer interactions, such as after service completion. This approach feels authentic and aligns with FTC guidelines.

Ongoing Monitoring

Watch for red flags like sudden spikes in reviews or repetitive language. These could indicate potential issues with review authenticity, allowing you to adjust proactively.

Future Outlook

The push for genuine reviews will likely drive innovation in verification technology. Upcoming changes could include better purchase-verification methods or more rigorous reviewer identity checks on platforms like Google and Yelp. Businesses can stay ahead by focusing on authentic engagement, documentation, and adapting to these emerging technologies.

By embracing the FTC’s rules as an opportunity to build trust, businesses can leverage compliance as a competitive advantage in local SEO. This shift encourages companies to focus on delivering quality service and engaging honestly with customers, helping to ensure that the marketplace remains fair and transparent for all.