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User-generated online reviews have become essential sources of information for potential consumers. Given the increasing importance of online reviews on consumer purchases, some traders try to publish or promote fake reviews on online platforms to improve the reputation of their goods or services, or to damage the reputation of their competitors. This paper aims (1) to analyse whether and how fake reviews violate the main legal and ethical principles of advertising, according to the legislations of the US, UK and EU as well as the International Advertising and Marketing Communications Code; (2) to assess how the EU, the UK and the US are dealing with them, and find out which approaches and actions are working best; and (3) to offer normative recommendations for effective prosecution of fake reviews. The paper uses a combination of theoretical and sociological approaches (section 1), black letter analysis of law (sections 2 and 3) and a comparative approach (sections 2 and 3). Among others, the article observes (1) that fake reviews are a form of illegal advertising and (2) that the European regulatory instruments provide more protection against fake reviews than the US and argues (3) that an effective fight against fake reviews requires strong administrative bodies, endowed with sufficient resources.
Although it is extremely difficult to quantify the real incidence of fake reviews, it is estimated that they range between 20 and 30% of the total reviews published excluding reviews directly filtered and rejected by platforms (Hunt 2015, p. 7, Kaitlin 2013, p. 365; Barish 2018, p. 833).Footnote 12 We are therefore faced with a widespread practice, with high potential for misinforming the users and distorting the competition in the market.Footnote 13 Fake reviews are detrimental to consumers, because they influence surreptitiously the consumers' decision making by falsifying the digital reputation of products and services (Short 2013, pp. 448–450). Likewise, they are prejudicial to fair competition in the market. Positive fake reviews give the praised product unfair competitive advantages. In contrast, negative fake reviews hurl an inaccurate or false accusation at the competitor's goods or services (Cardoso et al. 2018, p. 106).Footnote 14 Moreover, negative fake reviews potentially mislead competitors, who can make business decisions based on fraudulent opinions of fictitious customers, without knowing that such feedback is being manipulated by a competitor (Martens and Maalej 2019, p. 30).Footnote 15 Fake reviews also harm the online platforms that host them, since they reduce the credibility of their rating systems and consequently, their business model (Narciso 2017, p. 4; Ranchordás 2018, p. 135; He 2021, p. 31). Thus, fake reviews can be detrimental to the development of e-commerce, leading to vicious cycles of consumer dissatisfaction and defamation among competitors (Barish 2018, p. 833). Finally, some authors highlight that even the positive fake reviews can be harmful, because eventually consumers' suspicions would-be aroused, to a detrimental effect on the trader's sales thereafter (Zhuang et al. 2018, p. 26).
Like other content platforms, there are multiple ways to make money on TikTok. Here are some of the most popular methods:
Make sure to only recommend products that are relevant to your audience and provide value. If you don't believe in the product or service, then it's best not to promote it as people can tell when something is being sold out of desperation or inauthenticity.
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