The Federal Trade Commission (FTC) has finalized a sweeping new rule designed to combat deceptive practices in online reviews and testimonials. Lawyers and law firms should take special note, as this rule emphasizes transparency, ethical marketing, and compliance—issues closely tied to professional advertising standards for attorneys.
The FTC’s New Rule: Key Provisions
The new FTC rule addresses six main categories of conduct that the FTC deems deceptive and that businesses, including law firms, need to avoid:
- Fake or False Reviews
- Incentivized Reviews
- Insider Reviews and Testimonials
- Company-Controlled Review Websites
- Fake Social Media Indicators
- Review Suppression
Let’s take a look at each of the six main categories of conduct that the FTC deems deceptive.
Fake or False Reviews
The Rule prohibits the creation, purchase, or dissemination of fake reviews. This includes any review that misrepresents the reviewer’s identity, uses artificial intelligence (AI) to fabricate content, or falsely claims to reflect real consumer experiences.
What Does This Mean for Lawyers and Law Firms?
For law firms, this means that any reviews you use or promote must accurately represent real clients’ experiences. Using fake testimonials or reviews that are fabricated—whether by AI or a third party—can lead to significant legal and reputational risks.
Practical Tips
Verify the Authenticity of Reviews: Only use genuine client feedback. Avoid using reviews that are not verifiable or that have been manipulated.
Be Transparent: If you do use reviews from clients, ensure they accurately reflect the client’s experience. Avoid inflating or fabricating reviews to promote your firm.
Encourage Honest Feedback: Make it clear to clients that you value their honest opinions and that they are not expected to post specific types of reviews.
Incentivized Reviews
The Rule addresses incentivized reviews, where businesses offer compensation or other incentives in exchange for reviews. These incentives cannot be tied to specific sentiments, whether positive or negative.
What Does This Mean for Lawyers and Law Firms?
If you offer incentives for client reviews, you must ensure that they are not conditioned on the sentiment of the review. Offering perks such as discounts or gifts in exchange for positive reviews could be considered a violation of the FTC rule.
Practical Tips
Ensure Reviews Are Voluntary: Never pressure clients into leaving a review, and make it clear that any rewards offered are not tied to positive feedback.
No Sentiment-Based Incentives: Avoid offering discounts or perks specifically for positive reviews. Any incentive should be for the effort of leaving feedback, not for a specific tone or sentiment.
Disclose Incentives Transparently: If you do offer any reward for feedback, be transparent that it’s simply for submitting a review, not for posting a positive one.
Insider Reviews and Testimonials
The FTC’s Rule sets strict limits on insider reviews and testimonials. It requires businesses to clearly disclose any material connections between the reviewer and the business, including relationships with employees, officers, or close family members.
What Does This Mean for Lawyers and Law Firms?
Law firms must disclose when a review or testimonial comes from someone with a direct connection to the firm—such as a family member or an employee—otherwise, the review may be considered deceptive. Any insider reviews without proper disclosure can be flagged as a violation of FTC rules.
Practical Tips
Disclose All Relationships: If a review comes from an employee, family member, or someone closely connected to your firm, make sure that relationship is disclosed.
No Encouragement of Non-Disclosure: Do not encourage or allow employees or family members to leave reviews without clearly identifying their connection to the firm.
Monitor for Undisclosed Reviews: Regularly audit testimonials to ensure compliance with disclosure rules.
Company-Controlled Review Websites
The FTC prohibits businesses from claiming that a review website they control is independent when it is not. This includes any review platform or entity that a business manages or controls, which falsely claims impartiality.
What Does This Mean for Lawyers and Law Firms?
If your law firm operates any review platform or site, you must ensure that it is clearly identified as affiliated with the firm. Any claims of independence that mislead the public into believing the site offers impartial reviews would be deceptive.
Practical Tips
Identify Affiliation Clearly: If you control or influence a review site, make sure visitors are aware that it is affiliated with your firm.
Be Transparent: Always ensure that any review platform operated by your firm is presented transparently, with no suggestion of neutrality if it is not independent.
Fake Social Media Indicators
The Rule also addresses fake social media indicators, such as artificially inflated followers, likes, or views, which mislead consumers into thinking a business is more popular or credible than it is.
What Does This Mean for Lawyers and Law Firms?
Law firms should avoid purchasing fake social media engagement or manipulating social proof. Inflating social media metrics could lead to deceptive advertising violations and damage your firm’s credibility.
Practical Tips
Avoid Inflated Metrics: Never buy fake followers, likes, or engagement on your social media platforms.
Focus on Authentic Growth: Build your social media presence organically by creating valuable content that resonates with your audience.
Review Suppression
Finally, the FTC Rule prohibits businesses from suppressing reviews, especially those with negative sentiments, through intimidation, legal threats, or other manipulative tactics.
What Does This Mean for Lawyers and Law Firms?
While law firms are entitled to manage reviews, suppressing negative reviews through threats or coercion is not allowed. Similarly, manipulating reviews to only highlight favorable feedback would be considered deceptive.
Practical Tips
Do Not Suppress Negative Feedback: While you can respond to reviews, avoid tactics designed to suppress negative or unfavorable feedback.
Respond Professionally: If you receive negative reviews, respond thoughtfully and professionally to address concerns, but do not attempt to remove or suppress them unlawfully.
Encourage Constructive Feedback: Invite clients to share feedback, both positive and negative, and use it as an opportunity for improvement.
Key Takeaways for Lawyers and Law Firms
The FTC’s final rule on consumer reviews and testimonials introduces heightened scrutiny of advertising practices. It stresses the importance of truthful, transparent marketing—issues that are central to maintaining ethical advertising practices in the legal profession.
Maintain Transparency: Always disclose any material connections between your firm and reviewers, and ensure that reviews are authentic and not incentivized based on sentiment.
Regularly Audit Your Practices: Periodically review your law firm’s marketing materials, including testimonials and social media posts, to ensure compliance with the FTC rule and ethical advertising standards.
Stay Ahead of the FTC’s Enforcement: With the FTC ramping up enforcement and penalties for violations, take proactive steps to ensure your firm is compliant.
By aligning your marketing practices with these regulations, you can ensure your advertising reflects integrity and professionalism, protecting your firm from legal risks and reputational damage.
How We Can Help
Our team of experienced attorneys specializes in helping law firms navigate advertising and marketing compliance, with extensive expertise in representing lawyers in ODC investigations into advertising practices. We offer thorough reviews of law firm advertisements to ensure compliance with ethical standards, state-specific rules, and federal regulations, including the FTC’s new guidelines. Additionally, we assist in preparing responses to ODC inquiries, safeguarding your firm from potential sanctions or reputational harm. With deep knowledge of the legal industry’s unique challenges, we provide tailored strategies to minimize risk and ensure your marketing practices are fully compliant.
