The FTC's Trade Regulation Rule on the Use of Consumer Reviews and Testimonials, effective October 21, 2024, bans fake reviews and testimonials, reviews conditioned on positive sentiment, undisclosed reviews by owners and staff, company controlled review sites presented as independent, and suppression of negative reviews. HVAC contractors should show only real reviews, disclose relationships and never filter reviews to look more positive than they are.
The rule in brief
The FTC announced its final rule on August 14, 2024. It was published in the Federal Register on August 22, 2024 and took effect on October 21, 2024. It allows the FTC to seek civil penalties against knowing violators, which is a major change from earlier enforcement that relied mainly on the general prohibition on deceptive practices.
According to summaries of the rule, it covers these practices:
| Practice | What the rule targets | HVAC example to avoid |
|---|---|---|
| Fake or false reviews | Reviews that misrepresent who wrote them, whether they used the service, or their experience | Office staff writing reviews as "customers" |
| Buying reviews for a set sentiment | Incentives conditioned on a positive or negative review | "$25 off your next tune-up for a 5 star review" |
| Insider reviews without disclosure | Reviews by owners, managers, staff or their relatives without disclosing the relationship | A technician's spouse reviewing the company without saying so |
| Company controlled review sites | Presenting a review site you own or control as independent | A "best HVAC companies" site that only ranks you first |
| Review suppression | Intimidation or false threats to remove negative reviews, or presenting selected reviews as all or most reviews | Showing only five star reviews and calling it "what our customers say" |
| Fake social media indicators | Buying or selling fake followers or views for commercial misrepresentation | Buying followers for the company page |
What is still allowed
The rule does not stop you from asking for reviews. It also does not ban offering an incentive for a review, as long as the incentive is not conditioned on the review being positive or negative. You can:
- Ask every customer for an honest review after a job.
- Send a follow up email with links to your review profiles.
- Display real reviews on your website, with their source.
- Respond publicly to negative reviews in a professional way.
- Report reviews that violate a platform's own policies through the platform's process.
The Endorsement Guides still apply
Separately, the FTC's Guides Concerning the Use of Endorsements and Testimonials in Advertising, updated in 2023 and found at 16 CFR Part 255, explain how the FTC applies the law to endorsements. Key ideas for contractors:
- Endorsements must reflect the honest opinions and experience of the endorser.
- Material connections between you and an endorser, such as payment, free service or a family or employment relationship, should be disclosed clearly.
- A business should not present reviews in a way that distorts what customers actually think.
Applying it to your website
Displaying reviews
- Show real reviews with the reviewer's first name or initials and the platform they came from.
- Link to your full profile on that platform so visitors can see everything.
- Refresh the selection from time to time and include a realistic mix.
- Do not edit a review's meaning. Shortening for length is fine if the meaning stays the same, and marking the cut is better.
Review widgets
Live review widgets can be fine, but check their settings. Some widgets can be configured to show only four and five star reviews. If yours does, do not label the feed in a way that suggests it shows all reviews.
Testimonials and videos
A customer video or quote is a testimonial. Get written permission, keep it accurate, and disclose any connection, such as a discount given for taking part.
Stars in headings and ratings in schema
If you display an average rating, make sure it reflects the platform you name and is kept current. Do not invent an average or combine sources in a misleading way.
A simple review policy for the office
- We ask every customer for an honest review, never for a positive one.
- Any thank you offer is the same whatever the review says.
- Staff and family do not review the company, or disclose the relationship clearly if they do.
- We never threaten or pressure customers over negative reviews.
- The website shows real reviews with sources and links to full profiles.
Print it, share it with technicians and keep it with your marketing files.
When to get advice
This guide summarizes the rule and guides as published. It is not legal advice. If you run a referral program, use a marketing agency that requests reviews for you, or have a dispute over a review, talk to an attorney familiar with FTC advertising law.
Responding to negative reviews
Negative reviews are part of running a service business. How you respond matters to future customers reading them. Reply promptly, stay factual, avoid sharing private details about the customer, and offer to resolve the issue offline. Never threaten legal action or demand removal in exchange for a refund; the FTC rule specifically targets unjustified legal threats, intimidation and false accusations used to suppress negative reviews. If a review breaks a platform's own policies, use the platform's reporting process.
Review requests and texting
Many contractors send review requests by text after a job. Text messages bring their own consent rules under the Telephone Consumer Protection Act, especially when automated systems send them. Make sure your review request tool collects appropriate consent and honors opt outs. This is separate from the FTC review rule but often comes up in the same conversation.
Checking your current site against the rule
Walk through your site with these questions. Are all displayed reviews from real customers? Is each one attributed to a platform you could link to? Does any section suggest it shows all reviews when it shows only selected ones? Are any testimonials from staff, family or people who received something in return, without disclosure? Does any page claim a rating you cannot trace to a named platform? A no to the first two, or a yes to the others, marks a place to fix.
Keeping records
Keep a simple file showing how you ask for reviews, what any thank you offer was and when it applied, and which reviews appear on your website with their source. If a question ever comes up about a review or testimonial, records made at the time are far more convincing than recollection.
Can HVAC companies offer a discount for leaving a review?
Under the FTC rule, an incentive cannot be conditioned on the review expressing a particular sentiment. A thank you offered to everyone who leaves an honest review, whatever it says, is treated differently from paying for positive reviews.
Can I show only my best reviews on my website?
You can feature selected reviews, but you should not present them as all or most of your reviews if negative ones have been left out. Link to your full profile so visitors can see the complete picture.
Can employees review the company?
Reviews by owners, managers, employees or their relatives raise disclosure issues under the rule. The safest policy is that staff and family do not review the company, or clearly disclose the relationship.
When did the FTC fake review rule take effect?
October 21, 2024. It was announced on August 14, 2024 and published in the Federal Register on August 22, 2024.
Sources
- Federal Trade Commission, Federal Trade Commission Announces Final Rule Banning Fake Reviews and Testimonials (August 14, 2024)
- eCFR, 16 CFR Part 465, Use of Consumer Reviews and Testimonials
- Morgan Lewis, FTC Issues Final Rule on Consumer Reviews and Testimonials
- Federal Register, Guides Concerning the Use of Endorsements and Testimonials in Advertising (July 26, 2023)
- eCFR, 16 CFR Part 255
Disclosure: the owner of this site has commercial interests in web design services. This page is written to be useful whether or not you hire anyone, and it contains no paid placements.