§ 465.5. Insider consumer reviews and consumer testimonials.
412 words·~2 min read·
/us/cfr/t16/s§ 465.5·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)It is an unfair or deceptive act or practice and a violation of this part for an officer or manager of a business to write or create a consumer review or consumer testimonial about the business or one of the products or services it sells that fails to have a clear and conspicuous disclosure of the officer's or manager's material relationship to the business, unless, in the case of a consumer testimonial, the relationship is otherwise clear to the audience. (b)(1) It is an unfair or deceptive act or practice and a violation of this part for a business to disseminate or cause the dissemination of a consumer testimonial about the business or one of the products or services it sells by one of its officers, managers, employees, or agents, which fails to have a clear and conspicuous disclosure of the testimonialist's material relationship to the business, when the relationship is not otherwise clear to the audience and the business knew or should have known the testimonialist's relationship to the business.
(2)However, paragraph (b)(1) of this section does not apply to:
(i)Generalized solicitations to purchasers for them to post testimonials about their experiences with the product, service, or business, or
(ii)Merely engaging in consumer review hosting. (c)(1) It is an unfair or deceptive act or practice and a violation of this part for an officer or manager of a business to solicit or demand a consumer review about the business or one of the products or services it sells from any of their immediate relatives or from any employee or agent of the business, or to solicit or demand that such employees or agents seek such reviews from their relatives, when:
(i)The solicitation or demand results in an officer's or manager's immediate relatives, an employee or agent, or the immediate relatives of an employee or agent writing or creating such a review without a disclosure of the reviewer's material relationship to the business, and
(ii)The officer or manager:
(A)Encouraged the prospective reviewer not to make such a disclosure,
(B)Did not instruct that prospective reviewers disclose clearly and conspicuously their relationship to the business, or
(C)knew or should have known that such a review appeared without such a disclosure and failed to take remedial steps.
(2)However, paragraph (c)(1) of this section does not apply to generalized solicitations to purchasers for them to post reviews about their experiences with the product, service, or business.