Saturday, April 11, 2015

Do Not Meddle in the Affairs of Amazon…

I have written in this space before on a number of occasions about the issue of fake online reviews and the potential for abuse, including outright extortion, that they entail. The common factors in nearly all of these cases has been that it is generally quite difficult to combat fake reviews, either positive or negative, because it is difficult to catch the people doing it, and also because even if the offenders can be identified, most small businesses and solo practitioners do not have the money available to pursue legal action. Of course, we should probably note that the majority of the people doing this have the good sense not to call attention to themselves and to stay away from major businesses. After all, if they attempted to post fake reviews on a site belonging to a company with wealth and resources neither of those factors would protect them. A company like Amazon, for example…

According to a story in the SeattleTimes, later picked up by the BBC News page, Amazon is bringing suit against three different companies that had been selling a service that provides positive reviews on Amazon for the client’s products. Initially most of these companies were attempting to claim that nothing they did was wrong, let alone illegal, but I have trouble believing that this will go over in court well, either, given that the companies are called things like “buyamazonreviews.com.” Neither will the fact that the various review providers have been advertising that they can get the customer all of the 5-star reviews they want at the very reasonable price of $18 to $22 per (fake) review…

One of the less certain aspects of the case is whether it will remain a purely civil affair, or if there were also be criminal charges involved. Normally, Amazon will not post reviews from anyone who isn’t a verified purchaser of the product – that is, if they don’t have any record of your buying the product, they won’t let you post a comment about that product. In the lawsuit against “buyamazonreviews.com” Amazon is also claiming that the defendants have been using fake purchases and fake shipments – buying product from their clients through a series of dummy accounts and then receiving “shipments” containing only empty boxes. The allegedly faked reviews are already dodgy, from a legal standpoint, but the companies responsible for them can (and apparently do) claim that they are just finding satisfied customers and getting them to post positive reviews of the product. If Amazon can prove that the same companies are actively circumventing their verification system using faked purchases and fake shipments, it is going to be much harder to convince anyone that this isn’t fraudulent…

By themselves, a large number of five-star reviews aren’t likely to hurt anyone; Amazon will benefit from its share of additional sales, the company selling the products will benefit from the sales, and the review generation firm will make money on the deal. As a method to convince online shoppers that a given product is far more popular than its sales would indicate this strategy is far more problematic. And if the company making the product is able to secure extra sales using this method, but is then able to avoid demands for refunds when the product turns out to be less desirable than the fake reviews made it appear, then they have effectively defrauded the purchaser as well as discrediting the entire Amazon online review system…

Amazon contends that confidence in their review system helps to create confidence in their customers, which in turn makes it much more likely that electronic shoppers will chose to purchase goods from Amazon. If someone is allowed to make a mockery of the Amazon review system, the company claims, these result will be much lower consumer confidence, much lower sales of everything, and a significant cost to the company. If the court concurs this could be a very costly mistake for the review generation firms. If the Washington State Attorney General or the relevant U.S. Attorney’s office take notice and end up prosecuting this as a criminal case, things could get significantly worse than that…

I find it interesting that since this litigation began, two of the four companies named in the suit have shut down their websites and disappeared completely, one is refusing to respond to requests for comment by the media (and may also be in the process of shutting down and going away), and the fourth is trying to claim that they haven’t done anything wrong, including not breaking any laws. But I suppose we will have to wait and see what the jury (or juries) decide on this one…

No comments: