Gideon RubinOnline reviews are the new word-of-mouth. From where we eat, to what we buy, to which doctor we trust, these reviews often decide who gets the click, the visit, or the sale. But not all reviews are created equally. As more businesses turn to reviews to influence visibility and trust, a darker trend has emerged: fake reviews.
This blog breaks down:
- How fake reviews shape consumer decisions
- The tactics behind fraudulent reviews
- What businesses and SaaS marketing platforms can do to fight them
- The legal stance on fake reviews in the U.S. and Europe
The Real Impact of Fake Reviews on Buyers
Reviews play a critical role in the buyer journey. Studies show:
- 95% of customers read reviews before making a purchase.
- 88% trust online reviews as much as personal recommendations.
- Products with just a one-star improvement in rating can see 5-9% increases in revenue.
So what happens when the reviews aren’t real?
1. Distorted Buyer Perception
Fake positive reviews can make a mediocre or even poor-quality business look top-tier. Conversely, fake negative reviews can unfairly sink a legitimate business’s reputation.
2. Mistrust in the Marketplace
As consumers grow more skeptical of review quality, trust in platforms like Amazon, Yelp, or Google can decrease, affecting everyone, including honest businesses.
3. Damaged Brand Loyalty
When a customer buys based on fake praise and gets a subpar experience, they often don’t just leave but they leave angry, and vocal. Fake reviews don’t just deceive buyers; they create brand backlash.
Common Tactics Used in Fake Review Schemes
Fake reviews aren’t always the work of a single bad actor. They often involve coordinated tactics, including:
1. Review Farms
These are organized groups (sometimes in foreign countries) that post hundreds of reviews for businesses or products in exchange for payment.
2. Fake Reviewer Accounts
Bad actors create fake profiles using stock photos and generic names. These accounts can post multiple reviews across different platforms to appear legitimate.
3. Review Swaps
Some businesses offer discounts or free products in exchange for “honest” reviews, though what’s really expected is a positive review, regardless of experience.
4. Astroturfing
A deceptive practice where employees or vendors post positive reviews pretending to be real customers, to create the illusion of grassroots support.
5. Negative Review Bombing
Competitors or coordinated trolls post fake negative reviews to harm a rival’s reputation, often during peak business seasons or following news coverage.
How to Identify and Respond to Fake Reviews
1. Look for Red Flags
- Multiple reviews posted within a short time span
- Repetitive language or vague descriptions
- Reviewer with no history or dozens of reviews across unrelated industries
Pro Tip: LDE’s Business Reviews API can be used to monitor business reviews across the web and get access to the data you will use to identify fake reviews.
2. Report the Review
Most platforms allow users to flag suspicious reviews for investigation. Be sure to provide context: why you believe it’s fake and any relevant internal records (e.g., no matching customer order).
3. Respond Publicly but Professionally
Even if you know the review is fake, always respond as if it’s genuine. A thoughtful, factual reply shows others you’re attentive and professional:
“We take all feedback seriously. Unfortunately, we can’t find a record of your visit, but we’d love to make this right if you reach out directly.”
4. Use Review Monitoring Tools
Invest in technology that tracks review patterns, flags duplicates, and alerts your team to sudden spikes or drops in rating trends.
Legal Actions Against Fake Reviews
🇺🇸 United States:
The Federal Trade Commission (FTC) actively pursues review fraud. In recent years, it has:
- Fined companies for paying for fake Amazon reviews
- Sued marketers and agencies involved in fraudulent review schemes
- Issued warning letters to businesses found offering incentives in exchange for positive feedback
Key U.S. laws include:
- FTC Act: Prohibits “unfair or deceptive acts or practices” in commerce.
- Truth in Advertising Guidelines: Require that endorsements reflect honest opinions, and any relationship (e.g., paid review) must be disclosed.
Violations can result in:
- Fines of up to $50,000 per incident
- Class-action lawsuits
- Reputation-damaging headlines
In 2022, the FTC proposed new rules that would allow them to seek civil penalties more easily for businesses engaged in fake reviews.
🇪🇺 European Union:
Under the EU Unfair Commercial Practices Directive, businesses are banned from:
- Falsely claiming that reviews are from genuine consumers
- Commissioning someone to write a fake review
- Failing to disclose incentivized reviews
The Digital Services Act (DSA), which came into force in 2023, further requires platforms to:
- Take proactive steps to detect and remove fake reviews
- Be transparent about how they moderate and verify user content
- Offer appeal processes for users and businesses
Penalties in the EU can be up to 6% of a company’s global revenue for non-compliance.
How Multi-Location Businesses Can Take Control
Fighting fake reviews isn’t just about playing defense. Local SaaS marketing platforms and businesses with multiple locations can take a proactive and structured approach:
1. Claim and Monitor All Listings
From Google Business to Facebook to industry-specific directories—claim every listing. This gives you full access to review moderation tools and allows you to set alerts.
2. Create a Consistent Review Strategy
Encourage real customers to leave reviews. Use email follow-ups, QR codes in stores, or receipts with prompts. Most importantly, never offer incentives in exchange for positive feedback.
3. Use Review Verification Tools
Look for platforms or services that can flag duplicate IPs or suspicious volume spikes, verify purchase history before accepting a review and aggregate reviews across all locations for centralized monitoring.
Transparency Builds Trust
In a digital marketplace saturated with opinions, authenticity wins. While fake reviews may offer a short-term boost, they create long-term risks from regulatory fines to customer distrust.
On the other hand, businesses that build trust through authentic reviews, timely responses, and transparent practices are rewarded and not just by search engines and platforms, but by the people who matter most: their customers.
For multi-location businesses and the SaaS platforms that serve them, fighting fake reviews is more than compliance, it’s a competitive advantage.
📊 Ready to Fight Review Fraud With Data?
Don’t let fake reviews erode your brand’s reputation or mislead your customers. Our Business Reviews API gives you full visibility across platforms so you can spot suspicious activity, respond with confidence, and scale trust across every location.
