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Paying to Sabotage a Rival Seller – FTC Wants to Stop the Practice

Federal Trade Commission
Paying to Sabotage a Rival Seller - FTC Wants to Stop the Practice

An Amazon seller received a disturbing message from a buyer, which the seller posted on the Amazon discussion boards on Monday:

“Hello, I just wanted to send something your way that I found rather interesting. I get solicited by Amazon sellers all the time to review their products, but never once have I been offered a commission to leave a negative review for a competitor. I am not sure why you guys would be targeted this way but they offered me money to leave a one-star review for your product and then return it. I actually think your product looks good and I have always wanted to try a cold plunge so naturally I refused their offer. Picture attached for so you can see. Thanks for your time.”

The seller said their rival was willing to pay $10 for a negative written review, $20 to add a picture, and another $20 for a video.

While some may think it’s farfetched, the infamous Amazon bribery case shows how far some sellers may be willing to go to boost themselves and demote rivals. Federal prosecutors alleged that the defendants had Amazon insiders delete negative product reviews from their own product listings and also cause fictitious negative product reviews to appear in victim sellers’ product listings “to gain a competitive advantage and to settle scores.”

What’s disturbing about this week’s thread on the Amazon board is the number of sellers who have lost confidence in the review system.

But sellers aren’t the only ones concerned with the behavior of bad actors and their use of fake reviews, including fake negative reviews – so is the Federal Trade Commission (FTC).

Last week, in a press release announcing its latest efforts to update its advertising guides to combat deceptive reviews and endorsements, the FTC said it was seeking comment on a number of proposed measures to fight deceptive practices that include prohibiting buying positive or negative reviews.

The FTC wants more teeth when it comes to enforcement, saying that “case-by-case enforcement without civil penalty authority might not be enough to deter clearly deceptive review and testimonial practices.”

“Our proposed rule on fake reviews shows that we’re using all available means to attack deceptive advertising in the digital age,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The rule would trigger civil penalties for violators and should help level the playing field for honest companies.”

As for the seller who described the incident detailed above, a moderator advised them on Wednesday to report the incident and provided a link to the Report a Violation page on Amazon.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

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Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.