Online reviews can make or break a business, but a working paper out of Virginia suggests companies that try to game the system may be setting themselves up for a different kind of loss.
Researchers found that fake praise on sites such as Yelp and Amazon can erode something money cannot easily replace: public trust, according to Phys.org.
Here's what to know
A George Mason University study found that businesses that tamper with customer feedback may end up reducing their own reputational capital.
In the study's framework, business capital is not just made up of priced assets like land and cash — it also includes a separate, intangible form of value in the form of reputation.
That second category can determine whether customers trust a business, recommend it to others, or avoid it altogether.
Rather than helping a company, fake reviews may harm the very brand image they were meant to strengthen, the working paper indicates.
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Multiple reviews in a short period of time that give a fairly flawless take may be less a sign of quality than a clue that a company is prepared to mislead customers before they even buy, especially if the company is not well-established and doesn't have any professional reviews to back it up. Before putting stock into the value of these scores, consider the length of time the item has been for sale or the business has been open for others to have submitted reviews.
More background
Review platforms wield significant influence over everyday spending decisions.
When that system is flooded with fake praise, consumers can be misled to waste money, time, and energy on products or businesses that don't deserve the hype.
Companies can lose business when competitors use fabricated reviews to climb rankings or appear more trustworthy than they really are, which can push more businesses to cut corners just to keep up.
As disputes and lawsuits over reviews become more common, the George Mason finding stands out even more.
Misleading business practices can harm more than the public — they can also rebound on the companies behind them by destroying goodwill that no larger ad budget can simply buy back.
What can be done?
Businesses can stop relying on deceptive marketing tactics and earn reviews honestly. They can also invest in better products, responsive customer service, and transparency to help build trust.
Stronger moderation, better verification systems, and clearer enforcement on platforms can make it harder for fake reviews to gain traction and easier for shoppers to spot suspicious patterns.
Consumers, meanwhile, can protect themselves by looking beyond the star rating and looking for red flags like vague language or repeated phrases. Comparing feedback across multiple platforms and paying attention to detailed negative reviews can also help.
Where can I learn more?
Fake reviews are just one way companies can lose trust from consumers. The following articles illustrate how deceptive Amazon listings, eco-friendly labels, and other claims from brands can leave shoppers second-guessing what they're really being sold.
• On Amazon, shoppers said a mysterious upcharge on a Fisher-Price potty made packaging claims appear suspect.
• A branding expert showed how companies fool consumers through greenwashing with labels that overpromise.
• At Target, a TikToker highlighted how to spot greenwashing before vague in-store claims can sway buyers.
• In produce aisles, misleading fruit labels can hide weak standards.
• Inditex, Zara's parent, faced backlash after making concerning operational changes amid shipping delays.
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