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do companies write fake reviews

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It may sound like a lot of money to dole out, but the gaming of Amazon reviews can be big business: According to an analysis by the e-commerce consultant Pattern, a one-star increase on an Amazon listing can pump up sales by as much as 26 percent, which is why so many sellers are juking the stats. According to the fraudulent-review-detection service Fakespot, around 42 percent of 720 million Amazon reviews assessed in 2020 were bogus. The review fraud is not distributed equally - with more scams in the $15 to $40 range of products, where brand names aren't a necessity. Think home goods and cheap-ish tech products that consumers don't expect to last forever. "When we look at categories where you can start drop-shipping a product and slapping on a logo and competing with other people, those have a lot of fraud," says Saoud Khalifah, founder of Fakespot. The most fraud-proof sector? "Books. You cannot fake a really detailed review talking about a book." As Amazon expands into new sectors like health-care, there may be an incentive not to crack down with all the strength it can muster. "If Amazon deleted 100 percent of fake reviews, they would lose hundreds of billions of shareholder value," says Saoud Khalifah of Fakespot, who believes a full culling would show just how compromised the platform has become. With companies always pushing for more reviews, Khalifah doesn't expect the problem to disappear with the legal move in Seattle, where Amazon is headquartered. "Do you still receive spam emails?" he asks. "The parallel is the fake review. The more money there is to be made, the more fraud we're going to see concurrently with that growth."

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