Auto Dealer Monthly

SEP 2013

Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.

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By Stephanie Forshee INDU S TRY SPOTLIGHT Lawsuits fled by Edmunds and Yelp against frms posting fake reviews serve as another reminder of the high-priced battle review sites are waging to maintain their infuence on consumers. A FAKE 12 AUTO DE ALE R MONTHLY • SE P TEMBE R 2013 ©ISTOCKPHOTO.COM/SARAPULSAR38 SPOTTING Te eme Te emergence of consumer review sites has give ri v given rise to what one Yelp ofcial refers to as the "c as t "consumer deception industry." And in rece months, Yelp and Edmunds have taken c recent m step e steps to p prevent their sites from becoming playg rou o grounds for fake reviews. I lat In late July, Edmunds f led a lawsuit against Humankind Design Ltd., the parent company of GlowingReviews.co. Te vehicle information site claims the Friendswood, Texas-based company was doing more than managing dealers' online reputations, charging the defendants with registering more than 2,000 fake accounts on Edmunds.com and attempting to post at least 76 fraudulent reviews on behalf of 25 dealerships nationwide. One month earlier, Yelp f led a similar lawsuit against Timothy Catron, owner of AdBlaze.com and BuyYelpReview.com. Yelp is also seeking monetary damages from 50 yet-tobe-identifed defendants who allegedly utilized the company's services to create fake reviews. Ken Levin is general counsel for Edmunds. He says the car-shopping site is not pursuing action against the dealers Humankind represented because it would be difcult to prove whether they were complicit with the scam. In one case, he adds, the afected dealer claims he has never even heard of Humankind. "We don't really know what the facts are," Levin says. "And that's why we're not really accusing the dealers of anything, other than putting them on notice of the situation." UNVEILING DECEPTION On Jan. 22, Edmunds identifed a review that was "likely to be bogus." Almost two months later on March 11, the company was able to connect Humankind with the additional fake reviews that began to pour in from the frm's 2,065 accounts. T is led to the legal action Edmunds f led in a Texas court on July 23.

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