Online reviews are vital for your online businesses to attract potential customers. Therefore, it can be tempting to only display five-star or very positive reviews for your business and pay customers to leave an online review. However, there can be serious consequences that result from this, both legal and reputational. This article will outline:
- the issues with paying customers to leave positive online reviews;
- whether you can pay people to leave an online review;
- how to ask for customer reviews; and
- how to handle negative reviews.
Issues With Paying Customers to Leave Positive Reviews
When you regularly sell goods or services, New Zealand’s consumer law considers you to be ‘in trade’. This definition includes when you sell goods or services online. Therefore, your online business:
- must accurately represent your products;
- cannot mislead your customers;
- cannot make false statements or claims that are not substantiated;
- should disclose important safety information about products to your customers; and
- cannot engage in unfair sales practices.
Therefore, if your reviews are fake or deceptively positive, you may be misleading your customers. Additionally, if you do not clearly state that a review has been paid for, this will likely be a misrepresentation. Deleting negative reviews is also deceptive. If you mislead your customers, your businesses may face severe legal penalties, including fines of:
- $200,000 for individuals; and
- $600,000 for companies.
Additionally, your online business will likely be on the most popular review sites in New Zealand, including:
- Google Reviews;
- Yelp; and
- Facebook Reviews.
Many review websites also forbid businesses from hiding bad reviews from customers or only requesting positive ones. They list such bans in their terms and conditions. For example, Google Reviews prevents businesses from paying people for their reviews or selectively choosing to post positive reviews. This is the same for Yelp, which prohibits businesses from asking for customer reviews.
Can You Pay for Reviews?
It will likely be a misrepresentation if you want to pay people to leave a positive online review of your business. This fact is especially true if they have not used the product or had a negative experience. However, you can still compensate someone for leaving a review in some circumstances.
In particular, you can request that customers leave you reviews. However, you cannot dictate the nature of those reviews. You must make sure that they:
- have actually used your product or service;
- clearly state that they have been compensated for the review; and
- provide a genuine opinion, be that positive or negative.
This is similar to the process that occurs when businesses ask social media ‘influencers’ to promote products online. In this case, you can pay people with large social media followings to promote your online business or products. However, they must clearly disclose that you have paid them to provide a review.
How to Ask for Customer Reviews
You can ask for reviews after people purchase goods from you by sending a follow-up email or text message. Make it clear what you are requesting and that providing a review is optional. Keep it short and sweet, and your request polite. People will not appreciate taking a significant amount of time out of their day to write long reviews.
Continue reading this article below the formHow to Handle Negative Reviews
Be aware that customer reviews may not be positive. Sometimes, people will not have had a positive experience with your business and may wish to share this. However, you should not attack or delete poor reviews. Reply to the customers professionally and politely. Recognise that you want to use their feedback to improve your business. Validate their experience, and let them know that you appreciate their feedback.
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Key Takeaways
If you create fraudulent reviews of your business, you may be in breach of consumer law. You will likely suffer substantial reputational damage, and you may also be prohibited from using certain review sites. This will have severe consequences for your business, much more than the possible positives created from appearing to have a number of good reviews.
If you need help understanding misrepresentation in reviews for your online business, our experienced eCommerce lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.
Frequently Asked Questions
You can pay influencers to advertise your products, so long as they make it clear that you have paid for them to leave a review. They must also provide a genuine and honest opinion. You cannot make them leave a positive review.
Deleting negative reviews may be considered misrepresentation. Handle negative reviews maturely and responsibly, and thank people for providing feedback.
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