Summary: New York: Fake online products reviews have been around for years, fuelled by unscrupulous marketers ...
New York: Fake online products reviews have been around for years, fuelled by unscrupulous marketers seeking to boost sales. But a recent crackdown by authorities in New York could be the shock needed for the online sector to clean up its act. The New York state attorney general's office recently ordered 19 companies to halt these practices and pay fines totaling $350,000 to settle charges of manipulating online reviews for sites such as Yelp, Google+ and others. The settlement stemmed from an undercover investigation in which officials created a fake yogurt shop in Brooklyn and sought help in marketing from so-called 'search engine optimisation' firms that work to boost a company's online presence. The investigators discovered online ads such as this one: "Hello... We need someone to post 1-2 reviews daily on sites like: Yelp, Google reviews, Citysearch and any other similar sites. We will supply the text/review... We are offering $1dollar for every post." The companies hired writers from as far away as the Philippines, Bangladesh and Eastern Europe, according to the investigators. "Consumers rely on reviews from their peers to make daily purchasing decisions on anything from food and clothing to recreation and sightseeing," state Attorney-General Eric Schneiderman said. "This investigation into large-scale, intentional deceit across the Internet tells us that we should approach online reviews with caution. " While the extent of fake reviews is not clear, a 2012 report by the research firm Gartner concluded that between two and six percent of online reviews are 'fake or deceptive,' and predicted this will grow to around 10 per cent by 2014. High stakes The prevalence of fake reviews is due to the high stakes involved. The Gartner report said some 31 per cent of consumers use online review because they find the opinions of a person like themselves to be more credible than advertising. Gartner said studies from a number of university researchers suggest that positive reviews can provide a shot in the arm for many kinds of businesses, from hotels to restaurants to doctors or lawyers. "For restaurants, a half-star increase in the review average can cause 7pm bookings to go up 30 to 49 per cent." Sussin said fake reviews can be used by small family operations to Fortune 500 companies.
Muscat Press and Publishing House SAOC 2013
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