Cheat Sheet: The dangers of paying for online reviews
Consumers, competitors and federal agencies could take legal action against companies that enlist others to write glowing reviews
March 05, 2013 at 04:00 AM
4 minute read
The original version of this story was published on Law.com
Whether you're looking to book a hotel, choose a restaurant or hire a plumber, a host of online review sites can help you make the decision. But who's behind the feedback on such sites? Experts say that it's not always satisfied customers penning paeans to their favorite businesses, but rather companies themselves that are paying for glowing reviews. In our March issue, InsideCounsel examines the trend of paid-for reviews—and the possible risks that the practice could pose for companies.
How often do companies buy fake reviews?
A recent study by IT research firm Gartner Inc. found that between 10 and 15 percent of online business and product reviews are tainted in some way. In some instances, companies use sites such as Craigslist, Freelancer and Fiverr to find people who will write positive reviews in exchange for anywhere between $1 and $200, according to Jenny Sussin, a senior research analyst at Gartner.
What are the benefits of paying for reviews?
Positive reviews can give a business much-needed credibility and exposure, experts say. And that can translate into financial gains: Sixty-three percent of consumers are more likely to buy something from a site where there are user reviews, according to Jenny Sussin.
Some companies also post such reviews in the hope that their products or services will go viral. “Some businesses think they can jump-start that process by having it look like ordinary consumers are raving about a product and hoping that that catches fire among other consumers and then snowballs from there,” says Eric Goldman, a professor at Santa Clara University Law School.
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