Fake Positive Online Consumer Reviews Taint Review Sites’ Credibility

April 16, 2012 - PRLog -- A new study by Dallas-based Internet marketing and online reputation management firm Dalfort Media confirms what the New York Times, the FTC and state regulators already believe: fake positive reviews on consumer review sites are rampant. Based on ten "red-flag" factors, the Dalfort Media study found that 57% of the reviews for a sampling of businesses in the Google Places directory appeared to be fabricated.

Dalfort Media founder and principal Nick Nichols says that posting fake reviews – or having that done for you – not only lowers the value of all reviews, he cautions that the practice is clearly illegal and can cost a guilty business hundreds of thousands of dollars in fines and millions in lost sales resulting from bad publicity.

"Posting of fake reviews has gotten out of hand," says Nichols, a 16-year Internet marketing veteran. "What’s amazing is the blatancy of the positive reviews that are obviously bogus," he continues. According to Nichols, the study found that some local businesses have all five-star reviews at Google Places. "No business – no matter how good they are – gets 100% five-star reviews. It’s just not realistic – or believable," he adds.

Nichols is not alone in his concern. The Federal Trade Commission and the New York State Attorney General’s office are two of the more aggressive agencies targeting companies that post fake reviews.

After discovering that Legacy Learning Systems, Inc., and its owner deceptively advertised its guitar-lesson DVDs by using affiliates to promote the products through endorsements on blogs and online articles, the FTC settled with the defendants for $250,000.

Cosmetic surgery company Lifestyle Lift had to pay $300,000 in penalties and costs to New York State for the publishing of fake consumer reviews on the Internet.

According to a New York Times article from August, 2011, "Tens of millions of reviews on Web sites like Amazon.com, Citysearch, TripAdvisor and Yelp" may be fake. The problem is so widespread that a team of Cornell University researchers published a paper about creating a software program to detect bogus reviews. News of the research attracted the attention of major players like Amazon and TripAdvisor, whose revenues are tied closely to the credibility of reviews published at their sites.

A follow-up New York Times investigation in January, 2012 caught online retailer VIP Deals paying consumers for positive reviews via refunds. Dalfort Media has discovered similar review-for-hire situations.

Nichols offers this warning, "Don’t post fake reviews!" For businesses that have fake reviews posted, Nichols advises, "Do whatever it takes to get them removed. If you don’t, not only do you face regulatory action, fines and embarrassing negative publicity, you may also get banned from Google Places and other review sites."

Nichols, author of the new book, "Protect and Enhance Your Online Reputation," (available at http://ReputationRepairTips.com) has created a consumer guide titled, "10 Ways to Spot Fake Consumer Reviews." The guide is available free at http://DalfortMedia.com/freeguide-prl.

Dalfort Media provides reputation management and online marketing support services to businesses, professional service practices, membership organizations, non-profits and high-profile individuals. Learn more at http://ReputationShepherd.com and http://DalfortMedia.com . Nick Nichols is available for comments and expert opinions.

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