From 10 to 15 percent of ratings and reviews online via social media will be fake by 2014, according to a report by Gartner, which predicted at least two Fortune 500 brands will face legal action from the Federal Trade Commission in that period.
The report found that as companies are scrambling to gain more social media followers and garner positive reviews and “likes,” more are paying for reviews and offering incentives like coupons and promotions.
Gartner said the FTC’s 2009 determination that paying for positive reviews online is akin to deceptive advertising and will be prosecuted will lead to hot water for a few big brands over the next two years.
Gartner VP Ed Thompson said chief marketing officers will need to weigh long-term risks to reputation against short-term gains online.
The research company sees two positive developments, however. Some online reputation firms have taken to identifying fake reviews and requesting their removal, rather than posting phony favorable reviews.
Gartner also believes that low trust in social media will trend upward if FTC action and increased exposure of phony feedback online continues.