Thursday, June 26, 2014

The Road to Amazon's Bestseller List Is Paved With Fake Reviews

by Bertis Brenford

When shopping for products online, many turn to retail giant Amazon.com for recommendations, but the website's reputation as a trustworthy source has been tarnished recently. Readers of Forbes, The New York Times, Huffington Post or the Consumerist have read multiple reports on the dirty secrets Amazon harbors. With fake book reviews, paid product reviews and other nasty tricks used by unscrupulous vendors on the website, how can a consumer trust the online retailer?

According to Bing Liu, a computer science professor at the University of Illinois at Chicago, Amazon sellers are buying reviews because it is the cheapest way of marketing and it is very effective, since customers believe that they are reading authentic reviews.

Under the FTC's rules, when a reviewer benefits from posting a review in any way, they must clearly say so. This includes getting paid, being an owner or employee of the business and profiting from the sales generated by the review, getting free or discounted products for the review and more. That has gotten several companies in trouble so far, but for every company they catch in the act, there are many others who fly under the FTC's radar.

We ran an experiment to see what type of companies indulged the most in fake review writing on Amazon.com. Within the Health and Personal Care category only, we found dozens of vendors using deceitful practices, selling fake male enhancement pills, weightloss products, study aid supplements and more to unsuspecting consumers.

We bought several of these supposed health improvement products, each of which had hundreds if not thousands of positive reviews. Upon contacting Amazon to report over two dozen obvious fake reviews, complaints were ignored, and the fake reviews stayed on the website. What could be the reason?

It is not in Amazon's best interest to take down reviews that sell products, even if dubious in nature, because every sale brings much needed commissions. Wall Street made it all too clear recently that profit expectations for the retail giant remain sky high and the company knows that delivering on them will be increasingly hard. If keeping the share price high means deceiving the customer, be it.

The original king of Amazon fake reviews was VIP Deals, a now defunct company that found a surefire way of ranking products on top of the bestseller list. According to an article published in The New York Times titled "For $2 a Star, an Online Retailer Gets 5-Star Product Reviews," companies using VIP Deals' promotional services stooped as low as offering a refund to every single one of their customers in exchange for a 5* review. What is review tampering, if not that? They had amassed over 5,000 reviews for various products before the scheme came to an end after The New York Times article was published.

Recently a new disciple of VIP Deals appeared on Amazon. Ubervita, a company trying to break into the supplement industry using the same methods that VIP Deals used, has been offering customers full refunds in exchange for 5-star reviews. Ubervita has also posted hundreds of their own reviews from accounts that wrote exclusively abut Ubervita products. In a matter of months they have amassed over 1,700 reviews for their first product, W700 Thermogenic Hypermetabolizer, and they recently started getting hundreds of reviews for 4 of their other products too.

Ubervita has perfected the fake review scheme though, we found. Upon ordering their W700 fat burner, we received a bottle of mystery pills. There were no ingredients or instructions on the bottle other than to take the "proprietary blend" once a day. As expected, we saw no improvement after taking the product, except for the initial caffeine kick that wore off in four days. Three weeks after ordering the product, we received a postcard in the mail, asking for a review and promising a free bottle of UberSurge, in exchange. We were instructed to send an email to surge@ubervita.com to "collect our free bottle."

We emailed the company and their automatic response made it all too clear that a 5-star review was expected. They stated in bold, red letters that "If your experience was anything less than 5-star, PLEASE let us know how we can make it better. Merchants such as Amazon see 4 and 3 star reviews as the equivalent of a negative for us online." This is obviously not true, and a trick Ubervita used to get a portion of their 5-star reviews. As some commenters on the product's page stated, they would not have given W700 a 5-star rating if it weren't for the incentive, but most omitted that fact from their reviews.

Amazon's rules state that incentivized fake reviews are not allowed, and that if a reviewer receives compensation in exchange for reviews they must say so. Ubervita has several hundred reviews that do not state that they were offered free product explicitly in exchange for fake 5-star ratings. There are threads about Ubervita's suspiciously huge number of similar sounding 5-star reviews on Amazon and other websites. Yet, Amazon has done nothing to stop the inflow of 30 or more fake reviews a day for W700.

This begs the question: how can UberVita, a fly-by-night company with no history in the weightloss industry successfully fool consumers into buying a useless product under Amazon's nose, when online shoppers are reporting daily what is happening? Is Amazon purposely ignoring the issue to avoid hurting its own bottomline?

Perhaps one day the growing backlash over fake reviews will force Amazon to put customer satisfaction above profits obtained through questionable standards just to live up to analyst expectations on Wall Street. It may happen once the FTC fines a few more of Amazon's deceitful vendors for their marketing practices. No one knows when the next crackdown on the supplement industry will happen. Until then, Amazon customers beware; the online store does not seem to care about your well-being, only their own profits.

http://goarticles.com/article/The-Road-to-Amazon-s-Bestseller-List-Is-Paved-With-Fake-Reviews/9075733/

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