In today's world of the "internet 2.0" where social media dominates the scene, the potential for small businesses to succeed through Facebook and Google is amazing. But, there is a real dark side to all of this "socially powered" internet use. More and more, fake consumer complaints and reviews are dominating the small business, forcing many to go out of business!
As sites like Yelp (one of the worst offenders), CitySearch, Yahoo Local, Google Plus, and Kudzu gain popularity, they have also gained power. Many small busienesses are being killed by the reviews posted on these sites.
Why are reviews bad? Don't they protect potential customers from wasting money?
Yes, for the most part that's true. However, the reality is that these sites are over-run with fake consumer complaints, reviews and downright bogus negative reviews of small, local businesses.
Why would anyone do such a thing?
Well, the economy is growing...but slowly, therefore, local companies must work very hard to capture customer attention. With that, price wars start and some less-than-upstanding businesses will drop their prices to absurd rates, cutting corners and cheating the customer. In order to make up for their lack of quality, they often hire people to write positive reviews for their companies while having them also write negative reviews for competing businesses! Ironically, much of this work to destroy their local competitors is outsourced to India.
The Huffington Post picked up on this trend recently. In an article titled, "The Growing Problem Of Fake Restaurant Reviews" the paper stated:
"Beyond pay-for-play positive reviews, there are also documented instances of downright inaccuracies that lead to false, but negative, reviews. Graham Elliot's Grahamwich in Chicago started getting negative reviews before it even opened. More recently, Brooklyn restaurant Anella requested that a fake review get removed, and Yelp declined."
In an article in the U.K.'s, "The Guardian," an investigation revealed that "a Guardian Money investigation has uncovered fake reviewing on an almost industrial scale, with companies paying offshore contractors to post numerous glowing accounts of their activities, yet maintaining they are from unbiased consumers."
Or, consider the case of the fake consumer complaints of Basement Services 911, a small waterproofing company based in Pennsylvania. Former employees and competitors went on a negative review posting spree, costing the company money and forcing legal action.
Contractors, local restaurants, salons, spas, gyms, even the local coffee shop is at risk.
And, the worst part is, there's nothign we can do about it. Reviews are allowed to be posted 100% anonymously. All you need is a fake email address and user name and you can bash away. The truth, of course, is never considered. The average customer searches a company, sees a bad review and decides not to do business with them. The fact that this "review" is from a former employee or competitor is never revealed.
Even the old time giants, the Better Business Bureau and AngiesList are up to shennigans.
Two companies listed on the BBB. One has 7 negative reviews, all resolved, but gets an F rating. A competitor has 121 negative reviews, none resolved and gets an "A."
How is this possible?
Because to be listed as an "A" or "B" rated company, you have to pay dues to the BBB. Yes, you pay to get good ratings.
AngiesList is even worse. They re now facing numerous lawsuits from contractors who were give horrible reviews from people who never even had work done with the company! Common sense would dictate that you'd actually have to do business with someone before you can rate them, but, commonsense doesn't figure in much with AngiesList and other review sites. And yes, you have to pay to be listed on AngiesList...in this case, both the customer and business must pay a monthly fee. Talk about raking it in by playing both sides against eachother!