Amazon.com, Inc (NASDAQ:AMZN) Suing Websites For Fake Reviews

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Amazon.com, Inc (NASDAQ:AMZN) definitely wields power in defining e-Commerce industry standards. The superiority of the processes it has in place for customers to make their buying choice is sophisticated, with psychological parameters aiding the decision-making. One of the tools that Amazon.com offers its buyers is reviews of products/services by customers who have previously bought them. The aim of the review is to give new buyers first hand insight of those who are using the service or products, helping them to make ‘authentic’ reviews-based purchases.

The reviews on Amazon.com also include an ‘average star rating’ to indicate the satisfaction the previous buyer has had with the product.

However, Amazon.com, Inc (NASDAQ:AMZN) has now found that many websites are publishing ‘paid-reviews,’ thereby toppling a genuine ‘control’ mechanisms it implements for product purchase.

Amazon.com, Inc has filed a lawsuit against such websites. The e-retailer admits that, though such paid-reviews are ‘small in number,’ it does not want to undermine the trust of customers. Such reviews could affect the sellers and the manufacturers, reflects Amazon Inc., besides ‘tarnishing’ the brand as well.

Amazon.com, Inc. alleges ‘rogue’ websites are willing to pay as much as $19 to $22 per five-star rated review. The likely websites, which Amazon.com hopes to reprimand legally, include buyamazonreviews.com and its variants. The eCommerce giant has claimed that the guilty websites have infringed on trademarks, besides encouraging falsified advertising and disregarding consumer laws instituted for protection. The websites, in turn, claim that they have not ‘faked reviews.’ A spokesman for the site reiterated that their business was legitimate and they provide honest reviews that are unbiased and ‘not illegal.’

Amazon.com, Inc (NASDAQ:AMZN)’s attempts at legal action to arrest unwarranted reviews is a first. There is evidence, claim media reports, that the owner of buyazonreviews.com, Jay Gentile had instructed reviewers to establish their credentials at Amazon by shipping out empty boxes and verifying themselves as buyers to write the reviews.

Lisa Ray

Lisa Ray primarily covers Retail and Healthcare. Lisa Ray has completed her MBA (Finance) and an avid market tracker. She is a stock market analyst who closely tracks US markets along with other global markets like India. She has been expressing her views for years about markets and also advises various clients.

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