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.
Issue link: http://autodealermonthly.epubxp.com/i/158958
Edmunds and Yelp each fled separate lawsuits this summer against third-party websites attempting to post fake reviews. defendant as a participant in the so-called "consumer deception industry." Te June lawsuit charges AdBlaze and BuyYelpReview with trying to "game the system and build a business on selling fraudulent content," among other allegations, including trademark infringement, false advertising and "cybersquatting" — a practice by which a site uses an identifable company, such as Yelp, within its domain name to proft for itself. Te defendant, AdBlaze.com's J i Anderson, owner of Humankind, Justin A d fH ki d Catron, did not respond to requests denies the allegations. "We don't write the for comment. reviews or invent the reviews. We're postAccording to the complaint, Yelp has "agree to register only once using a single ing, to our knowledge, a bona fde review," yet to identify the entire list of businesses username," a recurring point highlighted he tells Auto Dealer Monthly. that purchased the reviews in question, so in the lawsuit. Te suit seeks injunctive relief, which it is uncertain whether any are car dealers. GlowingReviews' site has since been would prohibit Humankind from regisLowe declined to comment directly on the taken down, but its old FAQ page can be tering additional accounts or submitting pending litigation, but ofered insight in found on the Internet archive site WayBack reviews to Edmunds.com. Since broader terms. Machine. Te page acknowledges the petition was f led, Edmunds "Tere's been a steadfast emphasis [at that the company's reviews violate reports it has not detected any furYelp] on protecting consumers and making the terms of service for various rether reviews submitted by Humansure that, at the end of the day, the stuf you view sites. "If you take the time to kind on behalf of car dealers. read on Yelp is a pretty darn good predictor actually read the TOS, you'll see Te majority of the fraudulent of what your ofine experience is going to that it's very easy to break somereviews were linked to operations be," he says. "If you don't have that core piece thing," the page states. "Every based in New York City and Los of it, then people are not going to come back business plays in this grey area and Angeles. Levin says Edmunds KEN LEVIN to your site and use it as a resource." this service just lets you do it much reached out to the list of dealers, 12 Gartner Research predicts that 10 to 15 more efciently." of which are clients, and issued the percent of all reviews will be fake or deHumankind is also charged following warning: "Please do not do busiceptive by 2014. Tat number curwith trademark infringement for ness with companies that don't honor the rently sits at around 2 to 6 percent, using Edmunds' company name requirements of our membership agreeaccording to f ndings in the f rm's and logo. GlowingReviews' homepment." January 2013 report, "Solve the age lists 15 sites it has partnered Levin presumes that since no further Problem of Fake Online Reviews or with, including Edmunds and reviews from Humankind have appeared, Lose Credibility with Consumers." other top automotive review sites the company likely grew reluctant to conIf realized, the prediction could cut like Yelp, Google+, Cars.com and tinue posting. Tat leads to the possibility into the infuence review sites are DealerRater. Yelp, Cars.com and that there could be more dealers involved having on consumer purchases, DealerRater deny they are partners LUTHER LOWE who were lef waiting for reviews they purwith Digital Air Strike, a reputawith the site, and Google declined chased before the lawsuit was f led. tion management f rm, reporting to comment on the litigation. To submit a dealership review to that 67 percent of vehicle shoppers rely on RELATED CASES Edmunds.com, users must register with customer reviews when considering a veYelp f led its suit on June 20 against a simia name and e-mail address. Registrants hicle purchase. lar third-party company. Yelp's director of must also agree to the site's terms of serJenny Sussin, co-author of the study, public policy, Luther Lowe, refers to that vice (TOS), which states members must wrote in an e-mail to Auto Dealer Monthly SEP TEMBER 2013 • AUTODE ALE R MONTHLY.COM 13