Amazon's Fake Review Problem: A Threat to Consumers and Honest Sellers

Fake Amazon reviews are a growing concern, with review brokerage being a major issue. Sellers trade free products for fake five-star reviews through Facebook groups, harming consumers, honest sellers, and platforms. Amazon deletes about half of brokered reviews, but with a 100-day lag, allowing sellers to benefit from the positive effects before they are removed. Competition regulators are attempting to address these harms, with mixed success. The Canadian Competition Bureau's investigation presents an opportunity to take a strong stand against fake reviews and protect consumers.

Fake reviews on Amazon have become a significant issue, with review brokerage being a major concern. This practice involves sellers trading free products for fake five-star reviews through Facebook groups, which negatively impacts consumers, honest sellers, and platforms alike. Despite Amazon's efforts to combat this, the problem persists.

Amazon has been successful in deleting about half of brokered reviews, but with a 100-day lag, allowing sellers to benefit from the positive effects before they are removed [1]. This delay undermines Amazon's efforts to maintain the integrity of its review system. Furthermore, Facebook has been less effective in addressing review brokerage, as it does not directly feel the consequences of fake reviews on its platform [1].

Competition regulators worldwide are attempting to address these harms, with mixed success. The Canadian Competition Bureau's ongoing investigation presents an opportunity to take a strong stand against fake reviews and protect consumers [1]. The Bureau has taken the view that Amazon may be liable and has been investigating the platform since November 2021 [1].

One promising solution has emerged from a recent investigation into Google, which saw the parties agreeing on a "name-and-shame" model. Under this model, Google is now required to display prominent consumer warnings on the pages of businesses caught purchasing fake reviews for its platform [1]. This approach has the potential to disincentivize businesses from purchasing fake reviews and increase consumer trust.

The opportunity is clear: Once the investigation into Amazon has been concluded, the Competition Bureau can push for an outcome that mobilizes a name-and-shame model to punish Amazon sellers caught purchasing fake reviews. Such a solution has the potential to alleviate consumer distrust and reduce the number of fake reviews.

References:
[1] https://www.theglobeandmail.com/business/commentary/article-amazon-fake-reviews-brokerage-facebook/
[2] https://www.how2shout.com/how-to/how-to-delete-a-review-on-amazon-guide.html