Framework on fake online reviews: Will it make a real difference?

The Department of Consumer Affairs (DoCA) last week announced a framework that aims to keep a check on fake reviews of products and services posted on ecommerce websites to misguide and lure consumers. 

The framework is crucial considering the explosion of e-commerce growth in India. India’s e-commerce/D2C market is expected to reach US$ 74.8 billion in 2022 and US$ 350 billion by 2030, as per a report of India Brand Equity Foundation, Union Ministry of Commerce. 

Online reviews play a significant role in making purchase decisions in virtual shopping where people don’t really view or examine the product physically. Hence, it is essential that reviews are genuine, authentic and trustworthy. However, fake reviews tend to deceive buyers with incorrect information and set wrong expectations from products/services. 

Lessons for marketers

Marketers need to be cautious now as dubious marketing practices- may land them in soup, experts say. 

Dissecting the malpractices in the digital marketing domain, Manisha Kapoor, CEO of ASCI, says, “There are two aspects to the issue of reviews- one is fake reviews which are put up by unverified users. There are also companies that provide fake reviews that can be purchased.  This is a matter of fraud.” 

“Another kind of review is an incentivised review which is a form of disguised advertising. In this case, the reviewer must disclose this fact of material connection, and platforms must provide for such disclosures. Disguised advertising where ad content mimics editorial or surround content make it difficult for consumers to make an informed choice. Incentivised reviews are also a form of disguised advertising. Such practices have been identified in our recent discussion paper on dark patterns as well,” explains Kapoor. 

Not only manufactured appreciation reviews, few brands also indulge in targeted negative reviews about rival brands just to defame them on etail platforms.  The murky business of digital marketing has no limits these days, media experts said. 

Consumers also accuse some leading platforms of restricting their true feedback. “I was devastated after buying certain products online. When I wanted to post my reviews on the platform, my review was put under their review and never got posted,” a senior media person said. 

Decline in ratings expected 

Akshit Baluja, Director, ORM & Analytics, FoxyMoron, Zoo Media, said, “Based on the compliance of these guidelines, brands with offerings that are incomplete or of a lower quality than what is listed on platforms can expect to see a decline in ratings, consideration, and sales, whereas dubious marketing techniques involving dishonest reviews that are fake or seeded should start to reduce overtime.”

“While many folks who shop at the sites know about the fake reviews and find ways to filter them out. There are many others who don’t and fall for them. But it is a twin sword. If your product or service does not match up you have lost a customer after the first sale itself. And worse you get a negative review and word of mouth as well,” adds Ajit Narayan, CMO, Socxo.

“Brands along with their online distribution and communication channels should use this opportunity to adhere to the introduced processes & standardisations that will help reduce such reviews to improve consumer trust down the purchase funnel”, Baluja advises. 

He explains, “Marketers should work with brands on effective communication methods to promote certification & compliance with the new guidelines and increase awareness among their customers & community of all aspects involved with the publishing and reading of genuine reviews.”

Will fake reviews stop?

Fake online reviews have become so common that the UK’s competition watchdog, the Competition and Markets Authority (CMA), has launched an investigation early this year into whether online giants Amazon and Google are taking adequate action to protect consumers from bogus reviews posted on their websites. 

Approximately nine in 10 UK consumers stated they would check online reviews before buying from a particular business, according to Statista. Even more shoppers said they often avoid enterprises with a rating lower than four.

Amazon claims to have proactively stopped more than 200 million suspected fake reviews in 2020 alone, as per an Amazon blog post on its website in July 2022. Google also reportedly blocked 55 million reviews in 2020 that it deemed breached its policies. 

While many feel that the framework will deter marketers from indulging in wrongdoings, some experts say unless there is clarity over the framework and the operating guidelines, it's just lip service. 

Sandeep Goyal, MD of Rediffusion, says, “Malpractices could lead to penalties but that is really theoretical. Till there are some serious examples made, the fakes will continue. The government does not have any infrastructure to police what is fake and what is not. Lack of enforcement is a big hurdle,” Goyal remarks.  

Ajit Narayan, Chief Marketing Officer, Socxo, agrees with Goyal. “Fake reviews have been around since the internet was invented. Just that they went on steroids in a post social media world, not only e-commerce but also regular business which generates reviews on Google and other third-party sites.”

While the launch of the framework is a welcome baby-step, implementing this is far more complicated than what’s outlined. I went to the BIS site and had no idea where to find the actual framework on this. Once BIS communicates the framework, process and how it will work simply, we will know whether it will show results on the ground.”

Google is also bringing a new app review policy to make app ratings and reviews as genuine as possible in the Play Store, according to a report by Android Central. 

E-commerce players and leading FMCG and technology brands are yet to respond to the e4m questionnaire in this regard. The story will be updated as when they respond. 

What does the framework say?

Titled “Indian Standard (IS) 19000:2022 Online Consumer Reviews — Principles and Requirements for their Collection, Moderation and Publication”, the standards will be applicable to every online platform which publishes consumer reviews. It will initially be “voluntary for compliance” by all e-commerce platforms. BIS will also develop a Conformity Assessment Scheme in 15 days to assess compliance. 

“The standard will help usher in confidence among consumers to purchase goods online and help them make better purchase decisions,” the government said in a statement. 

Under the framework, platforms will be required to set up review administrators to moderate reviews using automated tools or manually to filter out biases and restrict fraudulent reviews. The reviews should also include the publishing date and star rating, the framework said.

Authors submitting reviews online will be required to verify their identity by platforms. Platforms will verify consumers’ identity from their email addresses, phone numbers, IP addresses or by using a Captcha system, the guidelines said.

Consumers should not be allowed to edit their reviews and use foul language. Platforms should also restrict authors giving fraudulent reviews. The standards will be applicable to third party reviews as well. 

Besides, e-commerce players must also disclose as to how they choose the “most relevant reviews" for display in a fair and transparent manner.