"Research outfit Gartner claims that up to 15 percent of all product reviews by 2014 will be made up. It is predicting that the media attention on fake social media ratings and reviews will result in at least two Fortune 500 brands facing litigation from the U.S. Federal Trade Commission (FTC) over the next two years.
Jenny Sussin, senior research analyst at Gartner said that with half of the Internet's population on social networks, organisations are scrambling for new ways to build bigger follower bases, generate more hits on videos, garner more positive reviews than their competitors and solicit ‘likes’ on their Facebook pages. Marketers have turned to paying for positive reviews with cash, coupons and promotions including additional hits on YouTube videos in order to pique site visitors' interests in the hope of increasing sales, customer loyalty and customer advocacy through social media ‘word of mouth’ campaigns.
However Organisations who opt to pay for phoney reviews can, and have, faced both public condemnation as well as monetary fines. In 2009, the FTC determined that paying for positive reviews without disclosing that the reviewer had been compensated equates to deceptive advertising..."
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