Many owners walk through a short routine before an ad, a review request or a sign-up page goes live. The routine below is called the Seven-Window Claims Check: seven places where a customer sees what a business says. See also the FTC Act overview and rules and numbers.
The Seven-Window Claims Check
- Claims window. List each factual claim in the ad, including what a reasonable customer would take from it, and note what backs each one.
- Endorser window. Check that each testimonial reflects the speaker's real, current opinion, and that anyone shown as a user really uses the product.
- Connection window. Disclose pay, free or discounted items, early access, prizes and family or business ties the audience would not expect, in plain view with no click or hover needed.
- Review window. Ask customers for reviews in a general way, and never condition a reward on a positive review.
- Insider window. Have owners, managers, staff and relatives state their tie to the business when they post about it.
- Sign-up window. For online subscriptions and trials, show all terms before taking card details, get clear consent and offer a simple way to cancel.
- Monitor window. Give influencers and agencies guidance, check their posts and fix problems, because the advertiser can be liable.
Common mistakes
- Placing a disclosure behind a click, link or hover. Under the Reviews Rule's definition, that is not clear and conspicuous.
- Giving free products, discounts or entries for reviews without disclosure, or only for positive ones.
- Letting staff, managers or relatives post five-star reviews without saying who they are.
- Making groundless legal threats against customers who leave honest negative reviews.
- Hiding unfavorable reviews while claiming the page shows all reviews.
- Buying followers, views or likes to look more influential.
- Assuming only the influencer is responsible for a missing disclosure.
- Running online free trials that bill later without clear consent, or with no simple way to cancel.
When to talk to an attorney
A CPA cannot answer these legal questions. People commonly bring in an attorney when:
- The FTC or a state attorney general sends a civil investigative demand, warning letter or subpoena.
- A subscription, free-trial or review program has to meet the online subscription law, state automatic-renewal laws and the Reviews Rule together.
- A business uses noncompetes with workers. Enforceability is a state-law question, and the FTC can still challenge particular noncompetes.
- A firm covered by the Safeguards Rule has a breach of unencrypted data on 500 or more consumers; an FTC notice is due within 30 days.
Frequently asked questions
Does the FTC Act apply to small businesses?
The statute text sets no size threshold. It covers persons, partnerships and corporations in or affecting commerce, with exclusions such as banks. Whether it reaches a particular nonprofit is unsettled.
Is the FTC click-to-cancel rule in effect?
No. A federal appeals court vacated the 2024 amendments on 8 July 2025, and the FTC restored the older Negative Option Rule on 12 February 2026. The online subscription statute (ROSCA) and state laws still apply.
Can I give customers a discount for a review?
The Reviews Rule bans rewards for reviews of a particular sentiment, positive or negative, whether the condition is stated or implied. A general request asking customers to share their experience is not itself banned. Free or discounted items can be a material connection to disclose clearly under the Endorsement Guides.
What is the FTC Act penalty in 2026?
For knowingly violating an FTC rule, or violating a final order, a court can impose up to $53,088 per violation. The statute's base is $10,000, adjusted for inflation, and the FTC reported that the 2026 adjustment was cancelled. Government penalties are generally not tax deductible.
A CPA can help with the payroll, tax and accounting side of these rules and works alongside the owner's attorney. See also CAN-SPAM and content creators and influencers.
Official sources
- Cornell Law School LII: 15 U.S.C. 8403, online negative option sales
- eCFR: 16 CFR Part 465, Consumer Reviews and Testimonials Rule
- eCFR: 16 CFR Part 255, Endorsement Guides, including 255.5 on material connections
- Federal Register: Negative Option Rule revision and noncompete rule removal, 12 Feb 2026
This page is a plain-language summary. The official source controls if there is any difference.