August 30, 2010 by Jenny Sanderson
Spam reviews have hit the news frequently over the last few months, as small businesses reveal the impact which a negative spam review can have upon their service reputation and customer retention. While a poor review can signal disaster for a business, positive reviews are on the increase for organisations looking to increase their online reputation through deceptive marketing strategies.
The US Federal Trade Commission (FTC) has this week made a ruling against a marketing firm that posted positive reviews of its customer’s applications on iTunes. The firm used the power of the web to generate positive comments relating to their client’s products.
According to the ruling, Reverb Communications encouraged its employees to post up bogus reviews on iTunes, posing as ordinary customers. They engaged in what the FTD terms ‘deceptive advertising’ to promote their products and generate further sales. They have now been ordered to remove any feedback which has been posted up through deceptive means.
This is the first time that the FTC have taken action under a new guidelines passed last year, which extends to both celebrity endorsements and online reviews. The move was the first time in over thirty years that the FTC had changed its policy. The new legislation marks the digital industry, as the posting of fake reviews did not have any form of policing associated with it until that point.
Reverb Communications employees posted up reviews which stated that their products were ‘amazing’, ‘the best’ or ‘just getting better’. A spokesperson from the FTC commented: “Companies, including public relations firms involved in online marketing need to abide by long-held principles of truth in advertising. Advertisers should not pass themselves off as ordinary consumers touting a product, and endorsers should make it clear when they have financial connections to sellers.”
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