📈 Business & Markets

Amazon takes aim at review scammers

Wednesday, Jul 20, 2022

Image: ChannelX

Amazon filed a lawsuit yesterday against the administrators of what it says are more than 10,000 Facebook groups used specifically to leave fake positive reviews on Amazon products.

⚙️🤩 How it works (allegedly)… Amazon sellers looking for fake reviews often reach out to brokers, who agree to bring in fraudulent reviews for a fee. The brokers then find people – allegedly via these FB groups – who order the sellers’ product and, after a few days, write a 5-star review. The broker then reimburses the seller for the product, sometimes giving them extra cash.

  • Many of the FB groups are private, and allegedly require potential members to provide proof they’re an Amazon seller or reviewer in order to be admitted. One
  • Amazon said it filed the suit in order to shut down the groups, learn the identities of their leaders, and compel them to return their “ill-gotten gains.” The tech giant also said Facebook has already taken down more than half of the 10,000 groups.
  • One of the groups, called “Amazon Product Review,” had more than 43,000 members.

🧠 In the know: Multiple surveys in recent years have shown that 90%+ of Americans say their purchasing decisions are influenced by online reviews.

+Dive deeper… Last year, regulators in the UK opened an investigation into whether Amazon and Google harmed consumers by failing to sufficiently protect them from fake reviews.

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