Some of the most popular features with consumers who shop on eCommerce sites are ones that incorporate User Generated Content. In particular Product Reviews and Ratings are consistently rated as highly valuable to both retailers and consumers. As the number of sites offering Product Reviews have increased, the credibility of online reviews has grown as well. In a recent global study by Nielson, they found that the number of people who now trust posted online reviews was 70% compared with 61% in 2007.
This has led to an increase in a “stealth marketing” practice known as “astroturfing” which is a PR campaign that is designed to fool consumers into believing that the campaign is really a grass-roots movement.
On July 14, 2009, the office of the Attorney General of New York, Andrew Cuomo, fined an online Plastic Surgery firm $300,000 USD for publishing fake consumer reviews on various internet sites that feature product reviews.
“This company’s attempt to generate business by duping consumers was cynical, manipulative, and illegal,” said Attorney General Cuomo. “My office has and will continue to be on the forefront in protecting consumers against emerging fraud and deception, including ‘astroturfing,’ on the Internet.”
According to the press and the Attorney General’s office, Lifestyle Lift had been concerned about a number of negative reviews that had been posted, that they felt were unfairly impacting their business. Their response was to create fake websites, like MyFaceliftStory.com, to direct their employees to post reviews as happy customers of Lifestyle Lift on sites Yelp, Epinions and Amazon, and to attack legitimate reviewers who had posted negative comments.
Internal emails discovered by Attorney General Cuomo’s investigation show that Lifestyle Lift employees were given specific instructions to engage in this illegal activity. One e-mail to employees said: “Friday is going to be a slow day - I need you to devote the day to doing more postings on the web as a satisfied client.” Another internal email directed a Lifestyle Lift employee to “Put your wig and skirt on and tell them about the great experience you had.”
The increased level of trust has made it easier to mislead consumers, but Retailers and CPGs should try to avoid this temptation because the credibility and usefulness of Product Reviews depends upon consumers having confidence in the authenticity of that content. If shoppers lose their trust in Products and Reviews then all that effort on the part of the retailer was for nothing, and those reviews are just taking up wasted space on their sites. With the size of the fine, the Attorney General of New York is also sending the message that if you get caught astroturfing, you are going to pay.
Office of the Attorney General of NY State
NY Times - Company Settles Case of Reviews It Faked