E-Commerce Law: Is It Legal To Pay For Online Reviews?

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Is It Legal To Pay For Online Reviews?

You can make money with an e-commerce startup. Amazon, eBay, Etsy – even Walmart – have incredible platforms for outside sellers. Even better? The latest holiday spending figures proved anxiety about Internet shopping has gone the way of the dinosaur.

Bottom line: there is e-commerce cash-money to be made.

But (there’s always a “but”), as more folks dive into the product marketing pond, competition is stiffer than the Queen’s Guard.

So, how are some sellers standing out from the pack? They’re buying reviews! Which raises the question: Is it legal to buy online reviews?

Let’s discuss.

Online Review Truth #1: Fake Reviews Can Get You Sued

Reviews are a vital cog in the e-commerce model. Every platform — and entrepreneur — leverages user reviews to sell, sell, sell! Think about it: when you see a product without feedback, do you buy…or hop to a similar product with reviews?

So, what’s a newbie to do? Is it legal to buy online reviews?

Brass tacks: e-commerce platforms are serious about review integrity, and they actively work to stomp out phony reviews. Not only are feedback algorithms used to scrub “bad” posts, but some platforms, like Amazon, actually sue paid review services and reviewers.

Are you thinking, “No problem, I’ll just use a paid review service overseas?” Well, you may want to reevaluate, because foreign governments are also cracking down.

The risk of permanent account expulsion increases, exponentially, if you use fake review services. The danger is real; you may get burned.

Online Review Truth #2: Disclose Material Relationships

What’s the easiest way to avoid review-related suspension hassles? Disclose, disclose, disclose!

If Aunt Bessie buys your organic sea-kale weight-loss lollipops, genuinely loves them, and wants to shout it from a mountaintop, she can certainly spread the sea-kale gospel via online reviews. BUT,  don’t PAY Aunt Bessie to write a review. (Update: Offering consumers free products is exchange for an online review is now also frowned upon by Amazon. You can read about the rule change here.)

Now, will you be tossed in the clink if friends and family don’t divulge their relationship, to you, in an online review? Of course not. Let’s be real: how will anyone know if user “Liv4Cats54” on, say, Amazon, is your relative? But know that disclosing the relationship is, technically, part of FTC guidelines. So, if the commission catches you in its web — or you become entangled in a marketing-related lawsuit — the issue of non-disclosure COULD arise and work against you.

Online Review Truth #3: Don’t Ghost Write Tons of Reviews for Your Products

Is it legal to pay for online reviews? Not really. Is it legal to write your own reviews under aliases? Again, not really.

For e-commerce platforms, reviews are both a blessing and a curse; a blessing because they engage audiences in a meaningful, profitable way; a curse because an outbreak of corrupt reviews has the power to crush a site’s credibility – and ultimately tarnish the brand.

So,  what’s the lesson? Don’t write a ton of fake reviews for your products. Websites use algorithms that sniff and snuff out certain faux-views. Best to avoid them altogether.

Online Review Truth #4: Don’t Sabotage Competitors’ Listings

One night, you’re sitting at home, stewing in a cauldron of frustration. Your ecommerce gamble is not working out nearly as well as you planned! You need to attract more customers!

You forget to ask yourself, “Is it legal to pay for online reviews or post fake ones?” And then, in a moment of weakness, you screed-type some nasty feedback on a competitor’s listing. Your rationale? Well, if I trash competing products, more people are likely to find me!

This type of thinking is wrong thinking. Being a rogue, fake-review-dispensing troll will bring you 99 problems, and a possible FTC sanction IS one.

Fake reviews fall clearly into the “unfair and deceptive marketing” strike zone. And depending on the circumstances, you could be sued for trade libel — and lose.

Befriend An E-Commerce Lawyer

You’ve vested a lot in your e-commerce business. Protect your efforts by teaming up with an experienced attorney with a nuanced understanding of:

  • E-commerce account appeals;
  • The online private label market niche;
  • Online marketing regulations;
  • FTC and FDA guidelines; in addition to
  • General e-commerce law.

Our focus areas (FTC compliance, review defamation, online intellectual property, et cetera) line up perfectly with what Internet businesses need to grow and earn.

We’ve answered the question “Is it legal to pay for online reviews?” Interesting in learning more about Internet business law? Yes? Then head here.

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