Influx of fake reviews hurting consumers and companies

The Federal Trade Commission has announced its first case against a marketer's use of phony paid reviews on an independent retail website.

"The FTC settled a case against a company that bought fake Amazon reviews for its weight loss pills," said Federal Trade Commission attorney Michael Ostheimer. "People rely on reviews and when a company buys fake reviews, it hurts both shoppers and companies that play by the rules."

Fake reviews are increasingly prevalent across many top retailer websites, according to a study from Fakespot.

Red flags for consumers include:

• A one-day surge in five-star reviews

• Broken grammar

• Reviews from reviewers who post hundreds of reviews in one day

It's reported that some companies are hiring people or using bots to also post fake "bad" reviews for competitors.

Yelp IPO Puts Consumer-Review Site up for Review

title

Content Goes Here