⚡ Get All Content for 20% Off ⚡

New York Cracks Down on Companies That Buy Fake Online Reviews Nearly 20 small businesses fined $350,000 for engaging in the deceptive practice on sites such as Yelp and Google Local.

By Benjamin Kabin

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

brands2life.com

In a business climate where Google reviews and stars on Yelp can have a real imact on your bottom line, buying your way into the good graces of the online community could seem like a no-brainer. But businesses may want to think again.

The New York Attorney General announced a crackdown today after an investigation into businesses -- local companies like restaurants, taxi services, hair and nail salons and clothing retailers -- that create fake reviews and post them to sites like Yelp and Google. The investigation into the practice, called "astroturfing," led to 19 New York companies, including a laser hair-removal service and a charter bus company, agreeing to pay a total of $350,000 in fines for engaging in the deceptive practice.

"Consumers rely on reviews from their peers to make daily purchasing decisions on anything from food and clothing to recreation and sightseeing," New York Attorney General Eric T. Schneiderman said in a statement. "And companies that continue to engage in these practices should take note: 'Astroturfing' is the 21st century's version of false advertising, and prosecutors have many tools at their disposal to put an end to it."

A study last year by technology research firm Gartner estimated that by 2014 as much as 15 percent of reviews on social media sites could be fake and paid for.

Although the investigation was targeted only at companies operating in New York, Yelp believes it will have wider implications. "This shows that fake reviews are a legitimate target of law enforcement," Aaron Schur, senior litigation counsel for Yelp, told the New York Times.

Related: Yelp: We Won't Stand for Businesses That Pay for Fake Reviews

Benjamin Kabin

Journalist

Benjamin Kabin is a Brooklyn-based technology journalist who specializes in security, startups, venture capital and social media.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Business News

Costco CFO Reveals Uncertain Fate of $1.50 Hot Dog and Soda Combo

CFO Richard Galanti reveals that the price will stay the same — but only "for a while."

Business News

The Most Unexpectedly Popular Side Hustle of the Decade Has Low Startup Costs and High Markups

A new report shows that vending machines are a popular investment — and the industry is set to grow up to $3 billion by 2031.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.