Amazon Is Punishing Fake Product Reviews

Since reviews are important to acquiring decisions, Amazon naturally feels it should prioritize its efforts to stop guideline breakers in order to safeguard the stability of the market. Still, the company claims just a small minority of evaluations are phony.

The brand-new matches represent a change for how Amazon controls its large online marketplace. In April, Amazon sued several operators of sites that apparently sold phony reviews for books and other products. Now it’s dealing with the root of the issue by pursuing the merchants who spend for the evaluations.

Our objective is to get rid of the incentives for sellers to participate in review abuse and closed down this ecosystem around fraudulent evaluations in exchange for compensation, the company stated in a statement.

Amazon is asking the arbitrator to prohibit the merchants it identified from utilizing the Amazon website and location the prohibited revenues made from fake reviews in a trust with Amazon as the beneficiary. It’s likewise seeking damages and for the merchants to pay legal costs.

Michael Abbara, of Fullerton, Calif is one of the merchants recognized in Amazon s arbitration requests. Amazon declares at least 30% of the reviews for his products, which are listed under his seller name REPZ, are phony. Other merchants being singled out by Amazon are Kurt Bauer, of York, Pa., who sold items under the name Barclin Home Products, and CCbetter Direct, a Chinese company operating under the name Bardin Home Products. It’s unclear which items they sold.

The arbitration comes at a profitable time for Amazon. Its first-quarter earnings report skyrocketed above analyst expectations and gave company founder Jeff Bezos an instant $6 billion bump to his net worth.