Online reviews have become a powerful tool in influencing how people choose to shop, eat or book their next service. But reviews can be both a blessing and a challenge. They build trust and attract new customers, but they can also cause harm if used unfairly or illegally.
When those reviews reflect genuine experiences, shoppers feel better informed, good service is rewarded and businesses are encouraged to lift their game. But when reviews are fake or manipulated, the system loses credibility.
It’s against the law for a business to create fake or misleading reviews or to arrange for others to do so. This includes posting positive reviews about their own business as if they were a customer, writing negative reviews about a competitor without ever dealing with them, or paying others to post fake reviews pretending to be real customers. These practices are misleading and breach the Australian Consumer Law.
Some businesses offer incentives such as discounts or gifts to encourage reviews, which is okay if it’s done transparently. Incentives must be offered equally to all customers, not just those likely to leave positive feedback, and any reward for reviewers must apply regardless of whether their review is positive. Any incentive should also be clearly disclosed so that other users understand it may have influenced the reviewer’s opinion.
On the flipside, if you’re a business owner and you’ve been targeted by fake negative reviews, you can take action. Start by contacting the review platform, identifying which reviews you believe are fake and explaining why, along with any evidence you have. You may also wish to consider responding to the review to correct the public record.
Many review platforms have systems to detect and remove fake reviews, but these are not foolproof. Businesses or review platforms that don’t remove or correct reviews they know are fake may be in breach of the Australian Consumer Law.
If, as a business owner, you receive a genuine negative review, it can be very upsetting but it’s best to respond calmly and constructively as it shows other potential customers that you take customer service seriously.
Sadly, scammers have also infiltrated the online review world. They leave a fake “1 star” review then ask the business owner to pay a ransom to have it changed to a “5 star” review.
Despite how distressing this is, businesses should never pay the ransom as it will only encourage further extortion. Report it to the review platform and to WA ScamNet – scamnet.wa.gov.au
The ACCC has an online review guide for business on its website at https://www.accc.gov.au/about-us/publications/a-guide-to-online-reviews-for-business-and-review-platforms.
