Start with the FTC Act overview; this page covers requirements, numbers and changes.
What the law requires
| Requirement | What it means in plain words | Section |
|---|---|---|
| No deception | Avoid claims or omissions likely to mislead a reasonable buyer on a point that matters to the purchase. | 15 U.S.C. 45(a) |
| No unfairness | Avoid substantial harm that buyers cannot reasonably avoid and that benefits do not outweigh. | 15 U.S.C. 45(n) |
| Honest endorsements | An endorsement reflects the speaker's genuine opinion, and a claimed user must be a real user. The advertiser can be liable even if the endorser is not. | 16 CFR 255.1 |
| Disclose connections | Say clearly when pay, free items, early access or ties would surprise the audience. | 16 CFR 255.5 |
| No fake or bought reviews | No fake reviews, no paying for reviews of a set sentiment, no company-run review sites posing as independent. | 16 CFR 465.2, 465.4, 465.6 |
| Insider reviews | Officers and managers state their tie to the business. | 16 CFR 465.5 |
| No review suppression | No groundless legal threats to block or remove a review. No claiming a page shows most or all reviews while hiding some by rating or tone. | 16 CFR 465.7 |
| No fake followers | No buying or selling followers or likes you knew or should have known were fake, to overstate influence. | 16 CFR 465.8 |
| Online subscriptions | Show all material terms first, get express informed consent, offer a simple way to stop charges. | 15 U.S.C. 8403 |
Key numbers and dates
| Item | Amount or date | Year in force | Source |
|---|---|---|---|
| Civil penalty per violation of an FTC rule (knowing) or a final order | Up to $53,088 (statute base: $10,000) | 2025 amount, still in force in 2026 | 16 CFR 1.98; 91 FR 58446 |
| Reviews Rule | Effective 21 October 2024 | 2024 | 16 CFR Part 465 |
| Safeguards Rule breach notice (covered firms) | FTC notice within 30 days of discovering a breach of unencrypted data on 500 or more consumers | Since 13 May 2024 | 16 CFR 314.4(j) |
Source: 16 CFR 1.98 and 91 FR 58446
Recent and pending changes
| Date | What happened | Status |
|---|---|---|
| Aug 2024 to 12 Feb 2026 | Noncompete Rule set aside by a court before it applied; FTC dropped its appeals 5 Sep 2025; removed 12 Feb 2026. | Vacated, removed |
| 8 Jul 2025 | Eighth Circuit vacated the 2024 click-to-cancel amendments. Older rule restored 12 Feb 2026. | Vacated |
| 13 Mar 2026 | FTC asked for comment on a new negative option rule. Comments closed 13 Apr 2026. | Advance notice only |
| 25 Nov 2025; 22 Jun 2026 | FTC finalized consent orders against Gateway Services and Rollins, Inc. over noncompetes | Final, those firms only |
| 15 Sep 2026 | FTC notice: no 2026 penalty inflation adjustment. | $53,088 continues |
Penalties and enforcement
The FTC enforces the Act. An inquiry can arrive as a warning letter, a civil investigative demand (a formal request for documents) or a subpoena, from the FTC or a state attorney general.
| Tier | What can follow | Amount |
|---|---|---|
| Conduct at odds with the Endorsement Guides | The Guides are interpretations, not statutes. Corrective action under section 5 can follow an investigation. | No set amount |
| Violating an FTC rule, such as the Reviews Rule | Civil penalties and consumer redress can be sought. | Up to $53,088 per knowing violation |
| Violating a final FTC order | Civil penalty | Up to $53,088 per violation |
Penalties are generally not tax deductible (IRC 162(f)(1)); see business expense deductions. Email rules are on the CAN-SPAM page. To apply these rules, use the checklist and FAQs.
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 1.98, FTC civil penalty amounts
- Federal Register: FTC civil penalty inflation adjustments notice, 15 Sep 2026
- 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.