At some point almost every local business owner has the same thought: "What if I gave people 10% off for leaving a review?" It feels harmless — you did good work, the customer was happy, and a small thank-you seems fair.
The instinct is understandable, because reviews decide so much. Around 97% of consumers read reviews for local businesses, so more reviews really does mean more customers.
But the rules changed. Since October 2024, the way you ask for reviews is a compliance question, not just a marketing one — and the honest answer to "should I offer incentives?" is usually no. Here is why, and what to do instead.
The line the FTC actually drew
In 2024 the Federal Trade Commission finalized a rule on consumer reviews and testimonials. It took effect on October 21, 2024, and it applies to every business — there is no exemption for small local shops.
The important nuance is where the FTC drew the line. The rule does not ban incentives in general. What it bans is tying an incentive to a particular sentiment. In the FTC's own words, a business can be on the hook for providing "compensation or other incentives conditioned on the writing or creation of consumer reviews expressing a particular sentiment" (FTC Q&A).
In plain terms:
- Not allowed: "Get 10% off when you leave us a 5-star review."
- Not allowed: "Loved your visit? Post a positive review for a free dessert."
- Technically allowed by the rule: "Leave an honest review — good or bad — and we'll take 10% off your next visit."
The difference is whether the reward is for the review or for the rating. Paying for a rating is buying an opinion, and that is exactly what the rule exists to stop.
Even an honest incentive comes with a catch
Say you do it the compliant way and offer a thank-you for any honest review. You are still not done. Two more things apply.
First, the perk has to be disclosed. An incentive creates what the FTC calls a "material connection," and it generally has to be stated clearly in the review itself — something like "I received a discount for this review" (FTC guidance for marketers). A customer rarely remembers to add that line, which quietly puts you offside.
Second — and this is the part that catches most owners — the review platforms are stricter than the FTC. Google prohibits content from people with a conflict of interest, and offering incentives in exchange for reviews violates its policies (; ).
