On Wednesday, August 15th the Federal Trade Commission (FTC) announced a final rule that will impact all restaurants operating in the US.

We're all familiar with fake news. Well, this ruling centers around fake reviews.

The high-level takeaway is that the FTC is banning the following:

• Fake or False Consumer Reviews, Consumer Testimonials, and Celebrity Testimonials
• Buying Positive or Negative Reviews
• Insider Reviews and Consumer Testimonials
• Company-Controlled Review Websites
• Review Suppression
• Misuse of Fake Social Media Indicators

But there are a lot of nuances to each ruling, and it can be confusing to understand what is allowed and what isn't. Don't worry, we've got you covered. We'll break down which rulings impact restaurants and specifics around what you can and can't do to avoid hefty fines.

Fake or False Consumer Reviews, Consumer Testimonials, and Celebrity Testimonials

The FTC ruling (aka what's banned):

• AI-generated reviews (aka reviews by non-humans)
• Reviews by any person (celebrity or non) who has never eaten at your restaurant
• Buying reviews (either in exchange for money, discounts, or free food)

What this ruling means for restaurants:

If any restaurants are using AI-generated reviews, just stop. That's a terrible business practice even if it was still legal.

If you use any sort of local influencers, celebrities, etc. to promote your restaurant—great! That's a fantastic way to promote it and gain new customers. Just make sure these influencers have actually eaten at your restaurant, which isn't too much to ask, right?

Buying Positive or Negative Reviews

The FTC ruling (in words that make sense):

Any type of compensation in exchange for a review is now strictly prohibited—whether it was explicitly expressed or even just implied.

What this ruling means for restaurants:

This is the ruling that hurts more than dropping an entire plate of surf and turf on the floor—you can no longer buy reviews. And the FTC doesn't just mean in exchange for money. They mean you can't offer discounts, free food, or anything in exchange for a good review.

So instead of panicking, here are some pro tops on how to legally solicit that good review.

Pro Tips for soliciting guest feedback and reviews:

1. Use "Request for review" cards with printed receipts
2. Receipt QR codes that link directly to Google, Yelp, Tripadvisor, etc.
3. Email or text request with digital receipt
4. If they mention how good their experience was, just ask them

Insider Reviews and Consumer Testimonials

The FTC ruling (in words that make sense):

Restaurants cannot have any insider (chef, employee, etc.) to give reviews about your restaurants without explicitly stating that they are associated with your restaurant.

For example, rapper Drake is part owner of Dave's Hot Chicken. Not everybody knows this. Side note: does anybody know who Dave is?

If Drake goes on Instagram to rave about Dave's Hot Chicken, they might think he's just a big fan. But he's not. And it would not just be deceitful, it would be against the law.

What this ruling means for restaurants:

Moving forward, Drake—along with any person associated with a restaurant—must disclose this information in their restaurant review.

Review Suppression

The FTC ruling (in words that make sense):

Bad reviews happen. Many of them are unfair. But you cannot threaten, intimidate, or create false public accusations as a way to stop them or get the reviewer to take them down.

What this ruling means for restaurants:

You know that Karen who left you a completely unfounded, over-exaggerated negative review? While you may wish you could send a glitter bomb to her house—resist the urge. It's illegal to threaten or intimidate guests who leave negative reviews.

You need to learn to channel that anger for good, and hopefully get a few Karens to change their reviews in the process.

Lucky for you, we recently wrote a step-by-step guide on responding to negative reviews, and it has everything you need to do it right.

Final Thoughts: Take Charge of Your Online Reputation

Overall, the FTC rulings are positives for the industry. They crackdown on fake reviews, and try to even the playing field for everyone.

The biggest takeaway for restaurants is this—for better or for worse, reviews are here to stay. And if you want to thrive in today's hyper competitive restaurant industry, you need to take charge of your online reputation.

Easier said than done, right? Wrong. You just need the right tools in place to help you succeed. Something that brings all of your feedback, reviews, and online listings into one place, helps you streamline and manage them with AI, and provides real-time insights into how your restaurant is performing.

That's what Akira can do for you. But don't take our word for it, see for yourself.