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FTC Puts Hundreds of Businesses on Notice about Fake Reviews

ftc.gov

21–30 of 281 posts

Re: FTC Puts Hundreds of Businesses on Notice about Fake Reviews

#21

I wonder if they have any intention of going after Amazon - probably not.

It isn't really Amazon that does it though, it's the sellers on Amazon. Although it would be interesting if there were ever fake reviews on the Amazon branded products. (AFIK there aren't)

Amazon sent free products for reviews from customers, Amazon is the chief architect of Fake reviews

Re: FTC Puts Hundreds of Businesses on Notice about Fake Reviews

#22

Random thought: before the Internet were reviews any better? I know there were/are quality reviews like Consumer Reports and such. But were there any crowdsourced reviews? Are we worse off or are we just needing to protect people from their inability to scrutinize a new source of bad data?

>Random thought: before the Internet were reviews any better?

Before the internet, there were these things called "magazines". These magazines earned money by selling ads.

Advertisers sold products that were reviewed in the magazines they advertised in. And if a magazine's review was unfavorable to an advertisers product, that advertiser could reduce their ad spending.

Also, advertisers could "bribe" reviewers. Probably not with direct cash payments, but it was generally expected that a reviewer would be "gifted" the product reviewed.

So, this has always be a problem.

Re: FTC Puts Hundreds of Businesses on Notice about Fake Reviews

#23
post #16
post #12

There's a whole fraud economy that has emerged in the last decade or so. Its existence has done deep harm to social trust, in my opinion. It extends far beyond just fake reviews of course; it reaches deep into the corrupt business practices and politicians/governments around the world.

How do you know reviews were more reliable before ? In pretty much all industries people were hacking reviews before especially when channels were more limited. Nobody invented fraud yesterday.

before, people got reviews from friends and personal connections, not a sidebar on google maps.

Re: FTC Puts Hundreds of Businesses on Notice about Fake Reviews

#24
post #16
post #12

There's a whole fraud economy that has emerged in the last decade or so. Its existence has done deep harm to social trust, in my opinion. It extends far beyond just fake reviews of course; it reaches deep into the corrupt business practices and politicians/governments around the world.

How do you know reviews were more reliable before ? In pretty much all industries people were hacking reviews before especially when channels were more limited. Nobody invented fraud yesterday.

How? Simple, you just have to look at scale and technology.

Re: FTC Puts Hundreds of Businesses on Notice about Fake Reviews

#25

I wonder if they have any intention of going after Amazon - probably not.

Section 230 protects Amazon from this. They could still go after Amazon if they believe Amazon is negligent in fake user review controls. On paper I think Amazon probably does a lot, but probably not enough.

Section 230 stopped protecting amazon from this the moment amazon started taking down reviews that called out incentives.

They are liable

Re: FTC Puts Hundreds of Businesses on Notice about Fake Reviews

#26
post #16
post #12

There's a whole fraud economy that has emerged in the last decade or so. Its existence has done deep harm to social trust, in my opinion. It extends far beyond just fake reviews of course; it reaches deep into the corrupt business practices and politicians/governments around the world.

How do you know reviews were more reliable before ? In pretty much all industries people were hacking reviews before especially when channels were more limited. Nobody invented fraud yesterday.

Reviews were more "expert"-based 20 years or so again in magazines that had some editorial oversight and processes for selecting and reviewing products.

Of course, there were far fewer reviews available, companies still gamed reviewers/magazines but in different ways, and there was sometimes outright fraud around benchmarks, etc.

Re: FTC Puts Hundreds of Businesses on Notice about Fake Reviews

#27
post #26
post #16

Earlier quoted context omitted.

How do you know reviews were more reliable before ? In pretty much all industries people were hacking reviews before especially when channels were more limited. Nobody invented fraud yesterday.

Reviews were more "expert"-based 20 years or so again in magazines that had some editorial oversight and processes for selecting and reviewing products. Of course, there were far fewer reviews available, companies still gamed reviewers/magazines but in different ways, and there was sometimes outright fraud around benchmarks, etc.

A huge portion of those reviews were payola, plain and simple. If a reviewer didn’t provide at least a somewhat positive review (even for complete dreck), they were often blacklisted.

Re: FTC Puts Hundreds of Businesses on Notice about Fake Reviews

#28

Random thought: before the Internet were reviews any better? I know there were/are quality reviews like Consumer Reports and such. But were there any crowdsourced reviews? Are we worse off or are we just needing to protect people from their inability to scrutinize a new source of bad data?

Some but very limited. Zagat was one for restaurants but they sold out to Google. I used to buy their books/do reviews in exchange for free books. Certainly imperfect but I liked their results pretty well probably because their reviewers lined up pretty well with my preferences--i.e. semi-serious survey.

And many quantitative things including TV ratings involved consumer surveys/polling.

Re: FTC Puts Hundreds of Businesses on Notice about Fake Reviews

#30
post #16
post #12

There's a whole fraud economy that has emerged in the last decade or so. Its existence has done deep harm to social trust, in my opinion. It extends far beyond just fake reviews of course; it reaches deep into the corrupt business practices and politicians/governments around the world.

How do you know reviews were more reliable before ? In pretty much all industries people were hacking reviews before especially when channels were more limited. Nobody invented fraud yesterday.

The "fraud economy" was democratized in the last decade but it has always existed. Previously you needed to be rich, powerful, and well connected to have media companies cover your business/product. Now you can buy fake engagement, reviews, upvotes, etc with a few click so everyone does it. If you don't do it you will be outcompeted by the ones who do. I've experienced this myself. I tried buying ads and writing organic posts but got little traffic on a site I wanted to promote. Then I decided to spend a few hundred dollars on fake upvotes and my ROI was easily 20x better than on ads. I had to be a bit more careful so it wasn't too obvious but I learned that these dark patterns work. I've heard of similar tactics used by unicorn startups in their early stages at much larger scale. The reviews weren't trustworthy before either, it's just more obvious now.
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