Consumers put too much faith in online reviews, experts warn
ONLINE reviews help most of us decide what to buy, or which hotel to book, but the problem is that many are being faked or manipulated.
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CONSUMERS are being warned to be wary of online reviews when making purchases or bookings, thanks to an increase in fake or misleading testimonials being used by businesses.
ACCC acting chairman Dr Michael Schaper said research suggested close to 80 per cent of consumers view online reviews before making a purchasing decision, but many of these may be unaware that reviews could be faked or purchased by businesses.
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“The most critical issue is online reviews being gamed so the only picture of a business is a positive one,” Dr Schaper said. “For misleading conduct, the acid test is whether you are giving people all the information you reasonably should to provide an accurate picture.”
Recent cases prosecuted by the ACCC ranged from companies employing back office operators to file fake reviews; to one well known company that was forwarding customer feedback to Tripadvisor, but supplying incorrect email addresses for those writing negative reviews, which rendered them unable to be verified.
Dr Schaper said there were giveaway signs that reviews were not all they appeared to be.
“Say a restaurant has online reviews, but there doesn’t seem to be anyone who has had a bad experience … that’s a giveaway because there will always be one negative experience,” he said. “Next, look at how many reviews there are. The more reviews, the better.”
If all the reviews sound similar or come from a similar IP address, they could be cut and paste jobs or someone repeating themselves, Dr Schaper said, adding that the penalties for dodgy businesses meant it was rarely worth the risk.
“It’s not just easy to cut and paste and generate fake reviews, it’s also easy to work out that you’ve done that,” he said. “Once people do figure it out, the negative news spreads much quicker today than it used to.”
Businesses looking to appear legitimate have also been known to purchase good reviews, with CHOICE research revealing in 2015 that 20 long form reviews could be purchased for as little as $31 and 5000 Instagram followers could set a business back just $75.
CHOICE editor Tom Godfrey said it was important not to believe everything you read.
“Section 29 of the Australian Consumer Law does prevent businesses from making or inducing false or misleading representations through testimonials or reviews,” Mr Godfrey said. “Businesses that pay people to write reviews who have never used their products or services are clearly misleading consumers and the regulator can take action against them.”
Alan Chapman co-founded his company Ethicas- which verifies reviews and awards businesses an authentication stamp- to try to bring transparency to the online review space, after learning that companies were being offered monthly payment plans to buy as many fake online reviews as they wanted.
“(It) is simply staggering,” Mr Chapman said. “For a few hundred dollars you can purchase enough negative reviews to bring down or destroy the reputation of a business.
“Make no mistake, review manipulation is one of the biggest digital crimes being committed across the world right now.
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“People are looking for accurate information about businesses and trusting online reviews as a source for that information,” Mr Chapman said. “We want Ethicas to become the tick of approval for consumers so they know when they buy from a website with the Ethicas badge the business will operate in an ethical manner.”
Originally published as Consumers put too much faith in online reviews, experts warn