The Regulatory Review blog reports that “With 77 percent of online shoppers using reviews to inform their purchase decisions, customer reviews play a crucial role in shaping international commerce. Fake reviews, which include manufactured and deceptive reviews, constitute about 4 percent of all reviews online. This 4 percent translates to a cost to consumers of $152 billion in online spending each year and a cost to businesses of $791 billion in lost sales each year in the United States alone. Despite the prevalence of fake reviews, the Center for Data Innovation found that almost half of American consumers trust online reviews to the same degree that they trust recommendations from friends or family members.” The blog offers a collection of articles discussing ways in which regulation can protect consumers and businesses from fake reviews online.
Consumer Law Scholarship, Federal Trade Commission
Regulatory Review: “Reviewing the Regulation of Fake Reviews”
