Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
New York Cracking Down on Businesses that Post Fake Online Reviews
Author: Scarinci Hollenbeck, LLC
Date: October 25, 2013
Key Contacts
Back
Have you ever read a glowing online review of a competing business and wondered how they did it? There is a good chance the post is fake, according to New York Attorney General Eric Schneiderman.
The NY Attorney General recently announced the results of a yearlong undercover operation targeting the manipulation of consumer-review websites like Yelp, Google Local, and CitySearch. It found that paid workers in countries like the Philippines and Bangladesh are behind many online reviews.
The investigation resulted in settlements with nineteen companies who engaged in “astroturfing,” defined as “[t]he practice of preparing or disseminating a false or deceptive review that a reasonable consumer would believe to be a neutral, third-party review.” Penalties assessed totaled more than $350,000, which included individual fines ranging from $2,500 to just under $100,000.
“This investigation into large-scale, intentional deceit across the Internet tells us that we should approach online reviews with caution. And companies that continue to engage in these practices should take note: “Astroturfing” is the 21st century’s version of false advertising, and prosecutors have many tools at their disposal to put an end to it,” Schneiderman stated.
Online review websites are also cracking down on phony online reviews. Yelp recently launched a lawsuit against a San Diego law firm that allegedly had its own employees write reviews and participated in an arrangement with other local law firm firms where they provided each other positive reviews.
The moral of the story for your New York business— online reviews are largely out of your control. While you may be able challenge the veracity of statements that are posted, the best defense is a good offense. Providing a quality product or service along with excellent customer service is the most effective way to drum up positive reviews.
If you have any questions about the investigation or would like to discuss the legal issues involved, please contact me, Fernando Pinguelo, or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
New York Cracking Down on Businesses that Post Fake Online Reviews
Author: Scarinci Hollenbeck, LLC
Have you ever read a glowing online review of a competing business and wondered how they did it? There is a good chance the post is fake, according to New York Attorney General Eric Schneiderman.
The NY Attorney General recently announced the results of a yearlong undercover operation targeting the manipulation of consumer-review websites like Yelp, Google Local, and CitySearch. It found that paid workers in countries like the Philippines and Bangladesh are behind many online reviews.
The investigation resulted in settlements with nineteen companies who engaged in “astroturfing,” defined as “[t]he practice of preparing or disseminating a false or deceptive review that a reasonable consumer would believe to be a neutral, third-party review.” Penalties assessed totaled more than $350,000, which included individual fines ranging from $2,500 to just under $100,000.
“This investigation into large-scale, intentional deceit across the Internet tells us that we should approach online reviews with caution. And companies that continue to engage in these practices should take note: “Astroturfing” is the 21st century’s version of false advertising, and prosecutors have many tools at their disposal to put an end to it,” Schneiderman stated.
Online review websites are also cracking down on phony online reviews. Yelp recently launched a lawsuit against a San Diego law firm that allegedly had its own employees write reviews and participated in an arrangement with other local law firm firms where they provided each other positive reviews.
The moral of the story for your New York business— online reviews are largely out of your control. While you may be able challenge the veracity of statements that are posted, the best defense is a good offense. Providing a quality product or service along with excellent customer service is the most effective way to drum up positive reviews.
If you have any questions about the investigation or would like to discuss the legal issues involved, please contact me, Fernando Pinguelo, or the Scarinci Hollenbeck attorney with whom you work.