The FTC’s New Rule on the Use of Consumer Reviews and Testimonials: What Lawyers Need to Know

As a lawyer, client trust is paramount. Positive testimonials and reviews can be powerful tools for building credibility, attracting new clients, and showcasing your legal expertise. However, with the Federal Trade Commission’s (FTC) new rule on consumer reviews and testimonials (16 CFR Part 465), it’s critical to understand how to ethically and legally use online reviews. This post will break down what the new rule means for you, how it impacts your Google Business Profile and other review platforms, and what constitutes an unlawful review in the context of legal services.

With the rise of digital marketing, lawyers must be especially cautious when managing online feedback. Whether you’re promoting your services on your website, a social media platform, or your Google Business Profile, ensuring that your testimonials and reviews comply with FTC regulations is essential to avoid legal penalties and preserve your professional reputation.

What is the FTC’s 16 CFR Part 465?

The FTC’s 16 CFR Part 465 is a regulation aimed at ensuring testimonials and reviews used in advertising are truthful and not misleading. The rule provides clear guidelines on how businesses—including legal practices—should handle reviews and endorsements. Specifically, the rule mandates that businesses:

1. Ensure reviews are truthful and not misleading.
2. Disclose material connections between the reviewer and the business (e.g., paid endorsements or relationships with employees).
3. Prevent fake reviews and manipulated feedback.

For law firms, the FTC rule is crucial because it ensures that your testimonials are honest, accurate, and representative of the experiences of your clients. Failing to comply with the rule could expose your practice to legal action, financial penalties, and damage to your reputation.

Let’s break down the most important aspects of the FTC’s rules and explore how they apply specifically to law firms.

1. Honesty in Testimonials and Reviews

The FTC requires that all reviews and testimonials used in advertising must reflect the genuine experience of the client. This means you cannot use fabricated or exaggerated testimonials to present an unrealistic picture of your services or outcomes. In the legal field, where client expectations are high and the stakes are often significant, it’s crucial that any reviews you use accurately represent typical client experiences.

Why This Matters for Lawyers

Lawyers often rely on testimonials to demonstrate their success and expertise. However, misleading testimonials that promise unrealistic outcomes can violate the FTC’s rules. For example, if a client claims that your law firm “always wins cases” or “guarantees successful settlements,” and those results are not typical or guaranteed, that review could be deemed misleading.

The FTC’s primary concern is that reviews must be honest and substantiated. For example, if a client writes that you secured a favorable settlement for them, this is acceptable—if it’s true and substantiated. If, however, a review suggests that you can consistently achieve large settlements without considering the actual complexity of the case or the likelihood of such results, it may violate FTC guidelines.

2. Material Connections: Disclosure is Key

The FTC mandates that businesses disclose any material connection between the reviewer and the business. A material connection can include:

• Monetary compensation: If the reviewer has been compensated in any way (such as receiving a free consultation or discount) in exchange for their testimonial, this must be disclosed.
• Family or employee relationships: If the reviewer is an employee, relative, or someone with a close personal connection to the firm, this connection must be disclosed in the testimonial.

What Does This Mean for Lawyers?

As a lawyer, it’s not uncommon for your staff, colleagues, or even family members to leave reviews. However, reviews from employees, close friends, or family members must be clearly disclosed as having a material connection with the firm. If you offer a free consultation, discounted services, or other incentives in exchange for a review, these relationships must be disclosed to ensure transparency.

For example, if a review is left by an employee, the disclosure could be something as simple as: “This review was written by an employee of the firm.” Alternatively, if a family member leaves a review, they must include a statement such as: “I am the sister of the attorney at this firm and am providing this review as a client.”

Failing to disclose such relationships can result in the review being deemed deceptive, which could expose you to penalties and reputational harm.

3. Fake Reviews: Avoiding Deceptive Practices

One of the key aspects of the FTC rule is the prohibition against fake reviews. The FTC defines a fake review as one that is either fabricated, exaggerated, or not based on a genuine customer or client experience.

Why This Is Important for Lawyers

In the legal profession, authenticity is critical. Potential clients depend on reviews to make decisions about hiring an attorney, and the use of fake reviews undermines that trust. A law firm cannot create or use testimonials that are false or misleading, nor can they solicit fake reviews from third parties, employees, or friends without disclosing their material connections.

For instance, if a lawyer pays a former client to write a positive review, this would be considered fake unless the compensation is disclosed. Similarly, asking an employee to write a review without clarifying that they work for the firm could lead to serious violations of the FTC’s rules.

Example of Unlawful Reviews in the Legal Field

A law firm offering to pay clients to leave positive reviews without clear disclosure would be in direct violation of the FTC’s guidelines. This type of activity is considered misleading, as it gives the false impression that a review reflects an independent, unbiased opinion.

4. Incentivizing Reviews: Best Practices

While incentivizing reviews is not prohibited under the FTC’s rules, there are strict guidelines around disclosure when it comes to incentivizing reviews. If you offer an incentive—whether it’s a discount, free service, or another benefit—in exchange for a review, you must ensure that the incentive is disclosed.

What Does This Mean for Law Firms?

If you offer free consultations, discounts on legal fees, or any other incentives for clients to leave reviews, this relationship must be disclosed either in the review itself or somewhere visible to prospective clients. You must also make it clear that clients are free to leave any kind of feedback, regardless of whether it’s positive or negative.

For example, if you offer a free initial consultation in exchange for a review, the review should include a disclosure such as, “I received a free consultation as an incentive to provide this review.”

Best Practices for Review Solicitation

1. Ask for honest feedback: Encourage clients to leave genuine reviews based on their actual experience.
2. Disclose any incentives: If you provide an incentive, ensure it is clearly stated in the review.
3. Don’t pressure clients: Ensure that clients know they can leave both positive or negative reviews without any repercussions.

5. How to Avoid Unlawful Reviews in Your Practice

The FTC’s new rule requires that all reviews on your Google Business Profile, website, or any other online platform comply with their guidelines. Here’s how you can ensure that your review management strategy stays compliant:

• Monitor all reviews for authenticity and compliance with the FTC’s regulations.
• Educate your team about the importance of compliance with the FTC’s rules, especially those who manage your online presence.
• Do not solicit reviews from non-clients. Always ask for feedback from people who have used your services.

Conclusion: Building Trust Through Compliant Reviews

For lawyers, online reviews are not just a marketing tool—they’re a critical part of building trust and credibility in a highly competitive industry. By understanding and complying with the FTC’s new rule on consumer reviews and testimonials, you can protect your law firm from legal consequences, while also building an honest and transparent online presence.

The key to success is simple: honesty, transparency, and compliance. Following the FTC’s guidelines will help you avoid penalties, ensure that your marketing practices are ethical, and build long-lasting relationships with your clients. If you need assistance with managing your online reviews or ensuring compliance with the FTC’s new rule, our team of digital marketing experts is here to help.

By adhering to the FTC’s rules and maintaining a compliant review strategy, you can continue to leverage online testimonials and reviews as an effective tool for growing your law firm—without risking your professional reputation.