Following a lengthy investigation and enforcement process, the New York Attorney General announced this week that nineteen companies, including SEO companies and their clientele, have agreed to cease writing false online reviews and will pay penalties ranging from $2,500 to $100,000 as part of a crackdown on the online reputation management industry. The practice of preparing or disseminating a false or deceptive review that a reasonable consumer would believe to be a neutral, third-party review is a form of false advertising known as “astroturfing.”
Astroturfing violates New York Executive Law Section 63(12), and New York General Business Law Sections 349 and 350.
“This investigation into large-scale, intentional deceit across the Internet tells us that we should approach online reviews with caution,’’ the NYOAG said in a statement. “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.’’
Senior litigation counsel at Yelp.com was quoted as saying that “more than 100 million visitors come to Yelp each month, making it critical that Yelp protect the integrity of its content.’’ “We take many steps to do this, including the use of automated filtering software, leveraging our vast user community for tips about suspicious content, undercover sting operations, legal action, and cooperation with law enforcement.”
The agreements stem from a year-long investigation by the NYOAG’s office and an undercover operation in which the office posed as a yogurt shop seeking to combat negative online consumer reviews. According to the NYOAG, certain SEO companies offered to write fake reviews on websites such as Yelp.com. It also found that some companies had employed freelance writers to write fake reviews at a fixed fee, per review.
If you become the subject of an investigation by state or local consumer agencies in New York, please contact an advertising law attorney that has experience resolving such matters with the New York State Attorney General and the New York City Department of Consumer Affairs.
Disclaimer: This article is intended for informational purposes only and does not constitute, nor should it be relied upon as legal advice. No person should act or rely on any information in this article without seeking the advice of an attorney.
