Yelp received a lot of attention in the online world last week for suing a bankruptcy lawyer (who had previously sued them and won) for leaving fake reviews. Suing a single practitioner may have some value in terms of the publicity and alerting businesses to the risks of creating fake reviews. But given the scale of this particular fake review problem it must largely be seen as a symbolic move on Yelp’s part if not retribution.
However the recent less publicized fake review suit and settlement by Edmunds seems to be more substantial and significantly more interesting. It was brought to my attention on Twitter by Ellen Edmands, a content manager for a car dealership marketing company in New York:
— Matkacita (@Matkacita) September 9, 2013
According to the lawsuit Edmunds accused Texas-based Humankind Design Ltd. of “registering nearly 2,200 fake member accounts on Edmunds’ website to post positive but bogus ratings and reviews about 25 dealerships in an attempt to influence consumers’ opinions”. Edmunds in their press release noted that Humankind, as operator of Glowingreviews.com blatantly identified “15 review sites on which it is prepared to post fake reviews; the list includes Google+, Yelp, Foursquare, Citysearch and local.yahoo.com. Edmunds.com is proactively providing each of the listed sites with a copy of its filing to further support online consumers who might otherwise encounter such fraud”.
Humankind claimed that they did not post fake reviews via GlowingReviews.co, but transcribed and posted reviews left on comment cards at dealerships. In the GlowingReviews.com FAQ recovered from the Web Archive they note that “Every business plays in this grey area and this service just lets you do it much more efficiently”. Regardless, as part of the settlement it appears that GlowingReviews has been shut down.