A $10 gift card for any review sounds simple. Without disclosure, moderation, and honest-collection guardrails, it becomes regulatory risk and worthless one-line praise.
This guide is not legal advice. Consult counsel for your jurisdiction and use case.
FTC endorsement basics
The FTC expects:
- Honest opinions — reviewers express their genuine experience
- Clear disclosure — material connections (payment, free product, discounts) are visible
- No misleading claims — you cannot fabricate or substantially alter reviews
- Equal treatment — do not suppress negative incentivized reviews selectively
Testimonials vs reviews: definitions and placement. Fake review prevention: spot fake reviews.
Incentives that stay ethical
| Incentive type | Notes |
|---|---|
| Entry into a drawing | Disclose odds and sponsor; no review required to enter (optional feedback OK) |
| Small thank-you credit | For completing feedback — not conditioned on star rating or positive tone |
| Early access / beta perks | Disclose relationship; common in SaaS |
| Charitable donation per response | Disclose amount and charity; do not require positive review |
Avoid: pay only for 5 stars, delete negative reviews from incentivized cohorts, or staff-written "customer" quotes.
Disclosure requirements
Place disclosure where shoppers see the review:
- On-site widget — "Reviewer received [incentive]" label on applicable reviews
- Review profile page — program terms linked from footer or review metadata
- Collection flow — reviewer sees disclosure before submitting
- Email invite — state incentive in the ask email, not hidden in terms
PraiseEngine moderation lets you tag and approve incentivized reviews with visible labels before they publish — you control what goes live on your first-party site.
What to avoid
- Buying reviews from non-customers
- Incentivizing only positive reviews or only publishing 5-star responses
- AI-generated reviews presented as customer-written
- Hiding incentive relationship in fine print
- Review gating — survey route: happy → public review, unhappy → private only
Approve-before-publish: why moderation matters. Negative review responses: response guide.
Collecting authentic incentivized reviews
- Offer incentive for honest feedback, any rating
- Link to guided AI interview — produces narrative from customer's words
- Customer approves draft before submit; you moderate before publish
- Label incentivized reviews on display widgets
- Publish negative but constructive reviews when authentic — builds trust
Guided interviews: how AI-guided collection works. Ask templates: how to ask customers for reviews.
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