Before you hire a real estate agent, choose a contractor, or make just about any major purchase, there’s a good chance you check the reviews first. Five stars can be persuasive. But what happens when those stars aren’t telling the whole story?
The FTC is paying attention.
The Federal Trade Commission’s Consumer Reviews and Testimonials Rule has been in effect since October 21, 2024, and its message remains clear in 2026: businesses can’t manufacture credibility with fake reviews, buy reviews they know are false, or offer incentives specifically for positive—or negative—reviews.
And this isn’t just a warning from years ago. In 2026, the FTC has continued taking action involving deceptive reviews, including a May case alleging a company created fake local-business listings and used fake reviews to mislead consumers.
What Does This Mean for Real Estate?
For buyers and sellers, online reviews can be an important part of researching an agent. But a glowing testimonial shouldn’t automatically be treated as the final word.
Look for reviews from identifiable customers, check multiple sources, and pay attention to patterns. The FTC specifically recommends considering where reviews come from and watching for suspicious bursts of reviews appearing within a short period.
For real estate professionals, the takeaway is equally straightforward: authenticity matters. Genuine client experiences can be powerful marketing without embellishment, manufactured praise, or questionable incentives.
And there’s a real financial reason to take the rules seriously. The FTC says violations of the Consumer Review Rule can lead to civil penalties of up to $53,088 per violation.
So the next time you’re scrolling through five-star reviews, don’t just count the stars.
Read the story behind them.
When you’re choosing someone to help with one of the biggest financial transactions of your life, an honest review is worth far more than a perfect one.
Source: REALTOR® Magazine
“The FTC Is Sniffing Out Fake Testimonials Online”
National Association of REALTORS®






