What does the FTC's fake-reviews rule mean for a dealership's reputation and social media vendor?
The FTC's Trade Regulation Rule on the Use of Consumer Reviews and Testimonials took effect October 21, 2024. It bans buying or selling fake reviews, employee or insider reviews that do not disclose the relationship, review suppression, and fake social-media engagement metrics: with penalties currently up to $51,744 per violation. A dealership's review-generation and reputation vendor needs to operate inside these rules, not just generate volume.
What does the FTC's fake-reviews rule mean for a dealership's reputation and social media vendor?
The FTC's Trade Regulation Rule on the Use of Consumer Reviews and Testimonials took effect October 21, 2024. It bans buying or selling fake reviews, employee or insider reviews that do not disclose the relationship, review suppression, and fake social-media engagement metrics: with penalties currently up to $51,744 per violation.
A dealership's review-generation and reputation vendor needs to operate inside these rules, not just generate volume. Per the FTC's own final rule (16 CFR Part 465): fabricated reviews, buying positive or negative reviews, an employee or manager posting a review of their own store without disclosing that connection, suppressing genuine negative reviews (including through a form that routes complaints privately while pushing only satisfied customers to post publicly), and purchasing fake followers, views or other indicators of social influence.
| Search intent | Reputation management compliance |
|---|---|
| Related categories | 2 |
| Related guides | 0 |
What the rule prohibits
Per the FTC's own final rule (16 CFR Part 465): fabricated reviews, buying positive or negative reviews, an employee or manager posting a review of their own store without disclosing that connection, suppressing genuine negative reviews (including through a form that routes complaints privately while pushing only satisfied customers to post publicly), and purchasing fake followers, views or other indicators of social influence.
Where dealership practice runs into it
A common, older reputation tactic is a feedback form that funnels a negative response to a private email and a positive one straight to a public review site: the rule's review-suppression provisions were written with exactly this two-path pattern in mind. A sales manager or F&I manager posting their own glowing review of the store they work at is an insider review, not independent testimony.
What to verify with a reputation or social-media vendor
Whether its review-request workflow routes every customer the same way regardless of expected sentiment; how it discloses staff or incentivized reviews if it collects any; and whether any social-proof metrics it reports or displays are organic rather than purchased.
A practical review-request process
Send the same review request to every customer in the same way, regardless of how the visit went, and give customers a plain route to leave feedback on a public site. Do not offer rewards conditioned on positive wording.
If staff or relatives post, follow the disclosure requirements. Keep a record of how requests are sent and reviewed, and ask your vendor to describe its workflow in writing.
Internal steps to take now
Review how your store asks for reviews, who reads the responses and whether employees or relatives post about the store. Document the policy, train staff and ask your vendor to describe its process in writing.
Review the policy each year and after any change of vendor. Involve counsel for questions about your specific practices.
What to verify
Review requests are not routed differently by expected sentiment
Staff and insider reviews are disclosed, not published as independent
No purchased followers, views or engagement metrics
Negative reviews are addressed, not suppressed or hidden
Describes the FTC's published final rule as of the date checked, not legal advice; a dealer's specific review-management practices require their own qualified legal review.
Continue the research
Related dealership technology questions
How should a dealer choose an automotive SEO agency?
Compare automotive SEO providers on technical access, migration capability, local and inventory knowledge, content quality, measurement,…
Virtual marketing managerWhat does a virtual marketing manager do for a dealership?
A virtual marketing manager provides fractional or outsourced leadership across dealership marketing strategy, vendors, budgets, campaigns,…
Renewal negotiationHow do you negotiate a dealership software renewal?
To negotiate a dealership software renewal, start before the notice window closes, not when the invoice…
Vendor countHow many software vendors does a typical dealership use?
A typical dealership uses more software vendors than most operators expect, and more than any single…