Amazon’s recent action to remove around 20,000 product reviews, generated by nine of the top 10 reviewers in the UK, follows an investigation by The Financial Times published in September 2020. The probe exposed suspicious activities among these reviewers who were profiting from posting thousands of five-star ratings. Justin Fryer, the top-ranked reviewer on Amazon.co.uk, stood out by reviewing £15,000 worth of products in August alone, consistently awarding five-star ratings at a rate of one every four hours. Many of these products originated from lesser-known Chinese brands, which often sent free products to reviewers or monetary compensation for reviews in exchange for positive reviews. Fryer appears to have sold many of these items on eBay, earning almost £20,000 in short terms. Initially denying paid-for reviews, Fryer later deleted his Amazon review history.
Furthermore, two other top 10-ranked Amazon UK reviewers erased their review history following
Mr. Fryer’s actions, while another prominent reviewer outside the top 10 removed his name and reviews and altered his profile picture to display the message “please go away.”
The Competition and Markets Authority (CMA), the UK’s competition watchdog, initiated its own investigation into online stores regarding “suspicious” and manipulated reviews in May. The CMA estimated that these reviews influenced approximately £23 billion in UK online shopping expenditures each year. A CMA spokesperson stated, “We will not hesitate to take further action if we find evidence that the stores aren’t doing what’s required under the law.”
Amazon’s persistent issue with counterfeit or manipulated product reviews seems to have escalated due to the COVID-19 pandemic, which significantly increased online shopping through its platform. Fakespot, an online review analysis group, estimated that in May 2020, about 58 percent of products listed on Amazon.co.uk had apparently falsified reviews. Saoud Khalifah, the Chief Executive of Fakespot, noted that Amazon UK exhibited a substantially higher percentage of counterfeit reviews compared to other online platforms.
In response, Amazon emphasizes its commitment to combating review fraud using artificial intelligence (AI) to identify unscrupulous actors and closely monitoring user reports. The company has expressed its intention to investigate the findings reported by The Financial Times and assures customers that it takes fraudulent activities seriously. Amazon also actively suspends, bans, and takes legal action against individuals who violate its policies.
However, it has come to light that Amazon had been aware of suspicious activities associated with
Mr. Fryer’s account. A user reached out to Amazon’s Chief Executive, Jeff Bezos, after receiving no response to their complaints. An Amazon employee later acknowledged the email and pledged to investigate Mr. Fryer and other high-profile accounts, but no broader actions were taken.
Mr. Fryer’s reviews since February covered a wide range of products from Chinese brands, including gazebos, vacuum cleaners, laptops, dolls houses, selfie lights, and a “fat removal” device. Interestingly, many of these same products were found listed as “unopened” and “unused” on an eBay account registered under Mr. Fryer’s name and address.
Amazon’s community guidelines explicitly prohibit posting content in exchange for compensation, including free or discounted products, except for its “vine” review program. This program is an invitation-only initiative where top reviewers receive complimentary products without any requirement for a positive review.
Observers note that Amazon’s algorithms incentivize individuals to pay for positive reviews to elevate their products within Amazon’s rankings and gain distinctions like the “Amazon’s Choice” badge. Fake reviews significantly skew consumer choices online, potentially leading consumers to select inferior products over superior ones.
Companies often reach out to willing reviewers through social network groups and messaging apps. Telegram, for example, hosts numerous automated chatbots designed to streamline this process. By adhering to this method, Amazon classifies these reviews as “verified purchases,” despite the reviewers receiving refunds, creating a need for more rigorous checks on online reviews.
Amazon faces ongoing challenges with counterfeit and manipulated product reviews, exacerbated by the surge in online shopping during the COVID-19 pandemic. The company emphasizes its commitment to addressing this issue, but concerns persist about the effectiveness of these efforts and the impact on consumer decision-making.
The role of social media
The Financial Times also uncovered that Facebook communities facilitating deceptive Amazon reviews continue to thrive, despite previous assurances to the contrary. Which? investigators found numerous groups on Facebook, some with tens of thousands of members, dedicated to manipulating Amazon’s review process through incentives.
Which?’s research follows a previous investigation that led to agreements between social media platforms and the UK’s Competition and Markets Authority to combat fake reviews. While eBay seems to have improved its situation, Facebook still faces challenges in addressing review manipulation. Natalie Hitchens, representing Which?, emphasized the risks consumers face when purchasing products on Amazon boosted by fake reviews. This behavior occurs at a time when Facebook is under pressure to enhance its platform’s monitoring and user protection.
Higher ratings equal higher sales
The impact of star ratings on product sales is significant. McKinsey’s analysis found a positive correlation between star ratings and sales in 55 out of 70 categories. SKUs with three- or four-star ratings experienced threefold greater sales than those with one star. Even a slight increase in rating, such as from 4.2 to 4.4 stars, often led to a substantial boost in sales figures. Overall, the growth potential attributed to enhancements in product star ratings across the categories studied was 37 percent, although this varied among categories. Factors such as consumer loyalty and reliance on reviews as a decision-making factor may contribute to these variations.
Fakespot, employs artificial intelligence technology to identify fake product evaluations and deceptive practices by third-party vendors, analyzed reviews on Daraz, the leading online marketplace across Pakistan, Bangladesh, Myanmar, Sri Lanka and Nepal, and spotted fake reviews. Fakespot’s analyzed 720 million Amazon reviews from 2020 and revealed that around 42 percent of these reviews were fraudulent, underscoring the prevalence of fake product evaluations on the platform. However, it is important to note that “Apple removed Fakespot from its App Store after Amazon complained the app provided misleading information and potential security risks” as stated by CNBC in July 2021.
For consumers, it is frustrating and also worrying to see that misleading reviews are spreading on well-known marketplace and that trust is now being questioned.
In Jesta Freak, our specialized team carefully studies positive reviews and successfully identifies the brands real reviews and therefore the brands’ Angel Customers. Looking at the fast development of AI and the high impact of social media on brands sales, consumers will get furthermore easily manipulated by greedy fast-growing businesses. Good luck with those chatbot human-like customer service agents trying to get your compensation or refund back!
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