The New FTC Regulation on Online Reviews: What Restaurants Need to Know (And How to Thrive)

The Federal Trade Commission (FTC) recently rolled out new guidelines regarding online reviews, and if you’re a restaurant owner, this is a big deal. The goal of these regulations is to protect consumers from deceptive practices, ensuring that online reviews are accurate, authentic, and trustworthy. So, if you’re in the hospitality industry—where online reputation is everything—this new regulation is something you need to take seriously.

But here’s the silver lining: these regulations don’t just challenge you to avoid fake reviews; they push you to create an elevated dining experience that speaks for itself. After all, the best way to maintain a positive online reputation is to have genuinely happy customers who want to rave about their experience.

So, let’s dive into what this regulation means for your restaurant, what you can and can’t do with online reviews, and how to align your marketing with your customer experience to thrive under these new rules.

What Is the New FTC Regulation on Online Reviews?

In simple terms, the FTC is cracking down on deceptive practices regarding online reviews. The key areas the new guidelines address are:

• No fake reviews: You cannot create or post fake reviews, nor can you ask anyone else to do it on your behalf.

• No deleting negative reviews: Removing or hiding negative reviews is considered deceptive, especially if you only leave the glowing ones up.

• Transparency in incentives: If you’re providing discounts, free items, or any kind of incentive in exchange for a review, you must clearly disclose this information.

For more details, you can find the full guide HERE.

Why It Matters for Restaurants

For restaurants, online reviews can be the make-or-break factor in attracting new guests. Your reputation on platforms like Google, Yelp, and TripAdvisor carries a lot of weight with potential customers. If a new customer checks out your reviews and sees only perfect 5-star ratings, it’s going to look suspicious—and that’s exactly what the FTC is addressing.

Now, let’s be honest—curating a positive online reputation has been a marketing tactic for years. But with these new regulations in place, the focus needs to shift from trying to perfect your online presence to genuinely elevating your guest experience. The best reviews are the ones that come from guests who had an exceptional time and want to share that with others.

Here’s how to align your marketing and customer experience to thrive in this new landscape:

Focus on an Elevated Guest Experience

First things first—your marketing should not promise an experience that doesn’t align with reality. If your marketing sets high expectations, your in-house service needs to deliver on that same level. There’s nothing worse than a customer walking into your beautifully marketed restaurant only to find subpar service or uninspired food. The disconnect leads to negative reviews, which are now here to stay (thanks, FTC).

Action Steps to Elevate Your Guest Experience:

• Train your staff consistently: Your team is the heart of your guest experience. Invest in regular training sessions to ensure consistent service and encourage staff to be proactive in resolving issues before they leave the dining room.

• Attention to detail: If you’re promoting a “fine dining” experience, your decor, plating, service standards, and ambiance should all reflect that. From how the table is set to how drinks are served, every detail matters.

• Seek feedback in-house: Ask guests about their experience before they leave. If there’s a problem, resolve it on the spot. A guest who feels heard is far less likely to vent their frustrations online.

Pro Tip: Create QR codes that direct guests to an internal feedback form. Encourage them to leave their thoughts and suggestions privately with you first, so you can address any concerns promptly.

Be Transparent About Incentives for Reviews

The FTC has made it clear: you cannot incentivize reviews without disclosing it. This doesn’t mean you can’t encourage customers to leave reviews—it just means you have to be upfront about any perks you’re offering.

Action Steps for Transparent Review Requests:

• Disclose incentives clearly: If you’re offering a free appetizer for a review, include that information in your messaging. For example, “Leave a review and get a free appetizer on your next visit! (Don’t forget to mention this offer in your review.)”

• Focus on honest feedback: Rather than asking for “positive reviews,” encourage guests to share their honest thoughts. This builds trust with both your customers and the platforms where your reviews are hosted.

Don’t Remove Negative Reviews—Address Them

It’s tempting to wish away the 1-star reviews, but under the new guidelines, selectively deleting or hiding negative reviews can lead to penalties. The key is to respond to them with empathy and a willingness to make things right.

Action Steps for Handling Negative Reviews:

• Respond quickly and sincerely: Acknowledge the guest’s experience, apologize if necessary, and offer to make it right. Even if you can’t change their mind, future readers will see that you care about guest satisfaction.

• Take the conversation offline: Offer a direct line for follow-up communication (such as an email or phone number) so you can resolve the issue privately.

Pro Tip: Use negative feedback as a learning opportunity. If you notice recurring issues in reviews, address them with your team to prevent similar situations in the future.

Encourage Organic Reviews and Build a Review Strategy

With the FTC’s new guidelines in place, the most effective strategy for reviews is to let them come organically from genuinely satisfied customers. Of course, you can encourage reviews without being deceptive—you just have to do it thoughtfully.

Action Steps for Building a Review Strategy:

• Create moments worth sharing: Go the extra mile in creating memorable experiences that guests want to rave about. Maybe it’s an impressive tableside dessert presentation or a warm farewell from the manager—these little touches make a big difference.

• Ask at the right time: Train your staff to ask for reviews after delivering an exceptional experience. A simple, “We’d love to hear your feedback online!” can go a long way when the guest is visibly happy with their visit.

Align Your Marketing and Experience Consistently

Your marketing should be an authentic reflection of what guests can expect when they visit your restaurant. If your marketing highlights luxury dining, but your table service is chaotic, there’s a disconnect. Consistency between your brand’s online presence and in-house experience is crucial.

Action Steps for Consistency:

• Evaluate your brand message: Look at your website, social media, and advertising. Are you accurately representing your restaurant’s ambiance, food quality, and service standards? Make adjustments as needed to align your messaging with reality.

• Underpromise, overdeliver: Set realistic expectations in your marketing materials and aim to exceed them when guests arrive. This approach not only reduces the risk of negative reviews but also creates opportunities for delighted customers to share their experiences online.

Final Thoughts: Embrace the Change and Thrive

The new FTC regulations might seem like a challenge, but they’re actually an opportunity to refine your restaurant’s approach to guest satisfaction and online reputation. By focusing on the guest experience, encouraging honest feedback, and aligning your marketing with your service, you can build an authentic online presence that resonates with customers and meets regulatory standards.

At Golden Hour Co., we specialize in helping restaurants create marketing strategies that are as genuine as the experiences they deliver. If you’re ready to elevate your marketing and reputation management game, get in touch at danielle@goldenhourcodigital.com to get started. Let’s make your restaurant the talk of the town—for all the right reasons.