FTC Enforcement and Penalties
How the FTC enforces the rules, the current $53,088-per-violation penalty, and the cases — Google/iHeartMedia, Teami, Lord & Taylor — that show what non-compliance costs.
The FTC has several tools to enforce endorsement and review rules, and it uses them. Understanding how enforcement works — and what it has cost companies — makes the case for building compliance into your workflow from the start.
The enforcement toolkit
- Section 5 actions for deceptive acts or practices, which can result in injunctions and orders.
- The Notice of Penalty Offenses, which puts companies on notice and unlocks civil penalties for later violations. See the Notice of Penalty Offenses.
- The Rule on Consumer Reviews and Testimonials, which carries civil penalties directly. See the Fake Reviews Rule.
- Warning letters, an increasingly common first step short of formal action.
The current penalty figure
Civil penalties are adjusted for inflation each January. The maximum is $53,088 per violation, set in January 2025 and unchanged for 2026. Earlier figures — $43,792 when the Notice of Penalty Offenses issued in 2021, and $51,744 previously — are historical. Because each deceptive post or transaction can count as a separate violation, exposure adds up quickly.
Notable enforcement actions
| Matter | Conduct | Outcome |
|---|---|---|
| Google & iHeartMedia (2022) | Radio personalities read first-person endorsements of a phone they had never used; ~29,000 spots aired. | $9.4 million to the FTC and seven states. |
| Teami (2020) | Influencers promoted detox teas without adequate disclosure, alongside unsupported health claims. | $15.2 million judgment (largely suspended); warning letters to influencers. |
| Lord & Taylor (2016) | Paid 50 influencers and a magazine for undisclosed promotion of a dress. | Settlement with injunctive order. |
Warning letters are a signal, not a safe harbor
The FTC frequently opens with warning letters — to trade associations, influencers, and companies. A warning letter puts you on notice; ignoring it can convert future violations into penalty-bearing conduct.
The practical takeaway
Enforcement concentrates on undisclosed material connections, unsupported claims, and manipulated reviews. Every one of those is avoidable with disciplined disclosure and honest reviews. The cost of compliance is trivial next to the penalties.
Authoritative sources
Last reviewed July 2026. This page is general educational information, not legal or tax advice.