How to Handle the Unfair Manipulation of Online Reviews by ...to+Handl… · How to Handle the Unfair Manipulation of Online Reviews by Competitors The significance of blogs is that

How to Handle the Unfair Manipulation of Online Reviews by Competitors

January 2015

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Strategies for StoppingUnauthorized Internet Sales

The Online Reputation & Brand Protection Coalition’s mission is to help businesses protect their online reputations and brands online. The Coalition aims to fulfill its mission by educating businesses on how to protect and defend their reputations and brands online and advocating for increased protections and more effective remediation options for businesses.

Specifically, with respect to education, many businesses today are struggling because they do not understand how to best protect and defend themselves against online reputation and brand attacks, and there is presently a lack of quality educational materials and resources for businesses to turn to help understand and address these problems. To address the absence of these resources, the Coalition is committed to providing resources to businesses with the most up-to-date information designed to explain, prevent, and help businesses ultimately eradicate the problem of online reputation and brand attacks.

The Coalition provides its members with whitepapers created by the experts who regularly handle online reputation and brand attacks around the world addressing common reputation and brand problems which businesses are facing today.

Our Non-Profit Provides Educational Resources to Help Businesses Protect Their Brands and Reputations Online

The Online Reputation & Brand Protection Coalition is a non-profit organization dedicated to helping businesses protect their reputations and brands online. The Coalition is led by internet brand protection experts Whitney Gibson and Chris Anderson and includes a variety of multi-national advisors comprised of experts, business representatives, attorneys, educators, and other professionals.

To learn more about the Coalition, visit www.onlineprotectioncoalition.org

ABOUT THE ONLINE REPUTATION & BRAND PROTECTION COALITIONBOARD OF DIRECTORS

Whitney C. GibsonCo-Founder, Co-Chair of Board of [email protected]

Chris Anderson, PH.D.Co-Founder, Co-Chair of Board of [email protected]

Melissa AgnesMember of Board of Directorswww.agnesday.com

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If businesses and their vendors are able to get away with unlawful practices, they can gain a clear advantage over their competitors, which will impact their bottom lines.

As mentioned in the whitepaper “How Businesses Should (and Should Not) Generate Online Reviews to Protect Against Online Review Attacks,” there are a number of tactics companies are using to improve their online reviews. While many methods of improving online reviews are lawful and encouraged, there are other ways that businesses may seek to influence online reviews that actually violate website policies and perhaps even federal and state laws and regulations. Due to the legal risks, possible ramifications from review-based websites such as Yelp, as well as potential public relations consequences, we strongly advise that business refrain from any deceptive tactics used to generate positive reviews.

Since a positive online reputation that features positive online reviews can offer a substantial competitive advantage, many businesses do and will continue to cross the line by using unlawful or other frowned upon tactics in hopes of getting a leg up on the competition. This includes offering incentives (including financial enticements) to generate positive reviews among other tactics that run counter to website policies, Federal Trade Commission (FTC) regulations, and actual laws. If businesses and their vendors are able to get away with unlawful practices, they can gain a clear advantage over their competitors, which will impact their bottom lines. Accordingly, we recommend that businesses implement programs to monitor industry competitors for signs that they may be using unfair and deceptive tactics to obtain greater online reviews and ratings.

Part II of this whitepaper describes methods for identifying unlawful online review generation tactics used by competitors. Part III sets forth different actions businesses can take to stop competitors from employing such tactics, and colleting damages if appropriate.

I. Introduction

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Businesses should meet with a monitoring vendor (or set up a program themselves if they have the capabilities) to create a program that monitors for various signs of illegal tactics to influence reviews.

1 While it may be frustrating for a business if a competitor has strong online reviews, this does not necessarily mean that a competing business is doing anything unlawful or shady to generate its positive reviews.

2 Besides unearthing unfair competition, tracking competitors’ reviews can provide several benefits to a company. This includes: 1) identifying what customers in the market do and do not like about the competitors; 2) identifying what aspects of one’s own business it may wish to change to try to win over competitors’ current customers; and 3) identifying what it may want to emphasize in its marketing materials to stand out from the competition.

II. Detecting Illegal Tactics by Competitors to Influence Online Reviews

To stop competitors from using illegal tactics to influence online reviews, businesses first need to identify those that might be using improper methods.1 To accomplish this, businesses should use a monitoring program that regularly pulls information from their competitors’ listings on review websites that can be used to evaluate whether the business is engaging in unfair competition. We recommend that businesses monitor direct competitors at least on a monthly basis, but perhaps more frequently. Businesses should meet with a monitoring vendor (or set up a program themselves if they have the capabilities) to create a program that monitors for various signs of illegal tactics to influence reviews. To assist, we have provided a list of the different types of illegal tactics and red flags that the monitoring program should be set up to track.2

In monitoring competitors’ reviews, a business should look for signs suggesting that any of its competitors (or their vendors) are posting positive reviews about themselves – disguising themselves as customers – which would provide potential customers with distorted views of these competing businesses.

Determining if competitors are posting false positive reviews

There have been many studies and expert commentary focused on identifying common characteristics of fake reviews on third party websites such as Yelp. Businesses should keep the following potential red flags or warning signs in mind when analyzing others’ reviews:

1. The same or similar reviews from the same or similarly named reviewers are also located on the website of the business receiving the positive reviews;

2. Fake reviews lacking details (a review that sounds too general is often not authentic);

3. Reviews sounding too technical in nature or otherwise deficient in the normal jargon of an average customer;

4. Multiple posts containing the same information or content;

5. Similarity of style in multiple reviews (e.g. identical grammatical errors or phrases);

6. Comments that use model numbers or formal product names (most people do not write this way);

7. Several/many reviews published in a short period of time;

8. An abnormally high number of reviews, more than would make sense in the industry (again, especially if a lot are published around the same time);

9. Significantly higher ratings on websites that do not verify the identities of customers versus those that do (many websites verify that reviews are

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The significance of blogs is that they will not have any policies such as Yelp guarding against the payment for reviews.

from actual customers, whereas many such as Yelp do not);

10. A reviewer has not posted a single additional review about another business; and

11. Over the top language and punctuation (e.g. lots of exclamation marks).

If a business suspects a competitor is posting false reviews, but is not entirely sure, it can retain cyber investigators who are able to use a variety of techniques to collect further evidence. If cyber investigations do lead to evidence suggesting that reviews were, in fact, false, a business can obtain an affidavit from the cyber investigator, which can be included in a cease and desist letter sent to the competitor; a complaint to a state or federal agency; or in other potential actions described below. Moreover, a business can retain an attorney to serve subpoenas on the third party websites hosting the reviews in order to obtain personally identifying information related to the authors of the reviews.

Determining if competitors are incentivizing others to post reviews

Most of the above 11 “red flags” apply to both businesses posting their own false reviews, as well as businesses incentivizing others to post false reviews – whether through money, gift cards, or other methods of enticing others. Another odd pattern of behavior to add to the list is someone having an online review profile on a website such as Yelp with strictly five-star reviews.

It is possible that such a person only wants to publish reviews for his or her favorite companies. It is also possible that they have chosen to boost the ratings profiles of other businesses because he or she was given something in exchange for a positive review. There are certainly people out there – possibly ignorant of rules and policies – who will happily draft up positive (or negative) reviews in exchange for money.

Finding out if a competitor has offered incentives in exchange for reviews can be accomplished by simply speaking with customers of both one’s own company and competitors, or by hiring an investigator. By no means should there be any sort of “witch hunt,” but rather there should be a good basis for investigating a competitor.

Watching for Unlawfully Paid Bloggers

There is a situation in which businesses can lawfully offer money or free products/services in exchange for a review, so long as there are adequate disclosures or appropriate disclaimers within those reviews. Companies often send bloggers free products (or even money) for product reviews. The significance of blogs is that they will not have any policies such as Yelp guarding against the payment for reviews. However, there are strict guidelines for paying a blogger for a review.

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For instance, the owner or operator of a website claiming to be an independent review site for local landscapers might be paid by one of the local landscaping companies.

Although FTC guidelines note that blogger compensation issues are decided on a case-by-case basis, the FTC says monetary payment or the receipt of products in exchange for a review are permissible only with proper disclosures. The type of compensation—be it money or product—makes no difference. If a blogger does not make it explicitly clear that he or she was compensated, both the blogger and the PR pro are at risk of liability for false or misleading advertisements.

Thus, businesses should also monitor whether their competitors are paying or offering other incentives for product reviews. Since many bloggers and other commentators on social media can be so influential, businesses must ensure competitors are not getting an unfair advantage on this front. Similar to the false reviews mentioned above, businesses monitoring competitors should keep an eye out for a significant number of positive reviews and a sudden increase in online reviews. If there are accompanying (adequate) disclosures: no harm, no foul. However, if it appears that another business might be offering incentives for reviews and they are not incorporating adequate disclosures, it may be worth hiring cyber investigators to see if they can uncover such evidence of wrongdoing. Further, if a business suspects a competitor is violating the FTC requirements, someone from the business might wish to consult with an attorney.

Being wary of manipulative review websites

Another tactic some businesses use today is hiring an affiliate marketing company to set up what appears to be an “independent” review website. However, the reviews are published in such a way that it gives consumers a more favorable impression of a competitor.

For instance, the owner or operator of a website claiming to be an independent review site for local landscapers might be paid by one of the local landscaping companies. His review of other companies might provide some legitimate information about them, gathered from other websites. His review might even give some tepid approval of them, concluding that they may do a fine job or that some people appear to be happy with the companies’ work. But the review will end with a conclusion that those companies still do not match up to the level of expertise, value or experience provided by the company that – unbeknownst to the consumer – is paying him, which remains “his” top choice in the field.

This kind of review is often more harmful than the traditional fake review. When people disparage companies or services with harsh and hyperbolic language, some readers may suspect the review is fake. But when a review appears to be more balanced in its assessment, the semblance of objectivity causes readers to believe it is authentic. And the trust this establishes with the reader makes it more likely he or she will be swayed by the conclusion of the reviewer, which is that the companying secretly bankrolling his efforts is the best bet.

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With manipulative review websites, marketers will often put a disclaimer on the website indicating that it is operated by a marketer receiving some compensation.

With manipulative review websites, marketers will often put a disclaimer on the website indicating that it is operated by a marketer receiving some compensation. However, these disclaimers are insufficient in that they do not provide consumers with a full understanding of how the reviews are possibly being manipulated.

For a business that is unsure as to whether an online review website is being operated by someone paid by a competitor, again, might consider consulting with a cyber investigator or attorney who regularly works in this area.

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Businesses should consult with their attorneys to determine their options and the costs and benefits of filing a lawsuit.

III. Methods for Addressing Competitors’ Illegal Online Review Tactics

If a business does identify deceptive practices by a competitor, there are a number of actions it can take to stop the competitor’s unfair practices. The best solution always will vary depending on a number of factors such as the business’s relationship with the specific competitor; the severity of the competitor’s deceptive practices; the damaged caused to the business (if any), the strength of the legal claims, the business budget, and more. In most cases, it is best to consult with an attorney to evaluate the various options and determine the best approach. To help businesses understand the range of options, we have provided a list of some of the most common methods for dealing with competitors engaged in deceptive online practices.

Cease and desist letter

One of the most common approaches is to have an attorney send a cease and desist letter to the business using deceptive practices. This approach typically does not cost very much, and is often effective in convincing the business to stop this practice. We have found that cease and desist letters are typically far more effective if a draft of the complaint (lawsuit) is attached. Depending on the circumstances, it may be worth communicating in the letter that the business may be reported to the FTC, the attorney general’s office, and that a civil lawsuit will be filed if the competitor does not cease its deceptive practices. It may also be necessary explain to the competitor that it is responsible for ensuring its vendors are not engaged in misleading or deceptive practices, as many businesses today are failing to appropriately monitor the activities of vendors.

Potential lawsuits

Beyond simply threatening of a potential lawsuit, a business may truly consider filing a potential civil lawsuit against a competitor. There are federal and state laws under which businesses can sue competitors for deceptive advertising practices. For example, businesses may file a lawsuit under the Lanham Act (the federal trademark statutes), and they may be able to recover damages, possibly competitors’ profits from the false reviews, and potentially attorneys’ fees. Filing a lawsuit also provides an opportunity for businesses to obtain further discovery and evidence related to competitors’ deceptive practices, such as the identities of the reviewers and facts related to any incentive-based online review schemes. Businesses should consult with their attorneys to determine their options and the costs and benefits of filing a lawsuit. FTC complaint

Businesses can also file a complaint with the FTC, the government agency that oversees consumer protection. Although the FTC will not intervene in disputes between competitors, it is receptive to complaints from businesses and will

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If the FTC finds a competitor’s advertising practices to be deceptive, the business may subject to a significant fine and publicly reprimanded.

investigate whether there are instances of deceptive practices that may be harming consumers. If the FTC finds a competitor’s advertising practices to be deceptive, the business may subject to a significant fine and publicly reprimanded. To file a complaint against another business that is or appears to be engaged in false advertising, contact:

Federal Trade CommissionConsumer Response Center600 Pennsylvania Avenue, NWWashington, DC 20580Toll-free 1-877-FTC-HELP (382-4357)

To find our more information about filing complaints with the FTC you can go here: http://www.ftc.gov/faq/consumer-protection/submit-consumer-complaint-ftc.

Contacting third party review website

Another option is to contact the third party website that is hosting the fake or misleading reviews. Review websites penalize businesses for engaging in most any form of deception related to online reviews, including providing incentives for positive reviews. Thus, if a business contacts the relevant review website and provides evidence that a competitor is using deceptive practices to manipulate reviews, the website may notify consumers of these practices, remove the business from the website, or take other actions that will penalize the competitor.

On TripAdvisor, for example, which considers “Offering incentives such as discounts, upgrades, or any special treatment in exchange for reviews” to be a fraudulent practice, the website may drop the “property” in its popularity index; it will be ineligible for awards and other positive press; and it may have a “large red penalty notice” on its listing page. Yelp, meanwhile, has also outed businesses that paid others for reviews, similarly posting a “Consumer Alert” for 90 days on the relevant pages of the offending businesses.

Even short of 100 percent certainty, a business might contact the website and explain the red flags that have gone off and ask the website to verify that the other business is not engaging in such practices. The review website may have access to information and analytics that the public does not, meaning it may be possible to determine if the business has, in fact, been engaging in deceptive practices.

NAD complaint

One additional option for a business is to file a complaint against its competitor with the Better Business Bureau’s National Advertising Division (NAD). The NAD is a private, self-regulatory group with which businesses can file “advertising challenges” against competitors for false or deceptive advertising. This process is

http://www.ftc.gov/faq/consumer-protection/submit-consumer-complaint-ftc

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This process is significantly less expensive than litigation and the cases get resolved much faster too – typically within 60 days.

significantly less expensive than litigation and the cases get resolved much faster too – typically within 60 days. This is a quality option for a business that disputes the substance of an online statement made by a competitor, such as the text of the disclaimer it may use with bloggers. Again, businesses should consult with an attorney to determine whether this is a beneficial solution in their particular cases; considering the lower costs and time considerations, it very well might be. For more information, businesses can visit the NAD at http://www.bbb.org/council/the-national-partner-program/national-advertising-review-services/national-advertising-division/.

http://www.bbb.org/council/the-national-partner-program/national-advertising-review-services/national-advertising-division/



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The internet has just provided a new forum for carrying out direct and indirect attacks on competitors, including through false and misleading reviews.

IV. Conclusion

Long before the internet, many businesses found ways to undercut their competitors. The internet has just provided a new forum for carrying out direct and indirect attacks on competitors, including through false and misleading reviews. Whether it is posting false positive reviews about one’s own business, posting false negative reviews about a competitor, or hiring people to do either, many businesses are unfairly impacting competitors through deceptive online practices. While harmed or potentially harmed businesses must evaluate the unique circumstances and weigh their options and associated risks before taking action, it is important to realize that there are many solutions. It is not fair to assume that any or all competitors are engaging in unfair competition, but businesses must keep a watchful eye if they suspect any illegal or unfair business, and then take the appropriate action.

www.onlineprotectioncoalition.org

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How to Handle the Unfair Manipulation of Online Reviews by ...to+Handl… · How to Handle the Unfair Manipulation of Online Reviews by Competitors The significance of blogs is that