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October 2011

Attack of the Trip Advisor and the Perils of Online Marketing

A television documentary starting on Channel 4 tonight highlights the dangers of internet forums to small businesses. Cutting Edge: 'Attack of the Trip Advisor' addresses the escalating issue that many businesses now appear on review sites such as Trip Advisor and many have faced a backlash that never would have seen the light of day before the internet age.

However, small businesses must be careful not to create false online reviews for their services, says James Corlett of Kirwans Solicitors.

“This practice is called ‘astroturfing’, because it fakes grass-root support. It is not only ethically dubious, it is illegal. And if the law doesn't damage the business of those who engage in it, the potential negative PR certainly will”.

A report in the Times Newspaper earlier this year found that some hotel owners in the UK were paying agencies up to £10,000 to improve travel review rankings and, in some cases, discredit competitors.

The Consumer Protection from Unfair Trading Regulations say that pretending to be a consumer and giving yourself a positive review is 'an unfair commercial practice'. This is a criminal offence and the proprietors are potentially liable for an unlimited fine and a prison sentence of two years. The practice is also contrary to the UK Code of non-broadcast Advertising, Sales Promotion and Direct Marketing (CAP Code).

It is likely that some businesses know this, but will be taking the calculated risk that they will not be caught, or will escape prosecution due to the fact that it is unlikely that the OFT would investigate an individual complaint and the ASA’s action will probably be minimal too, as has been the case historically.

Corlett added: “The real reason that businesses should avoid astroturfing is not legal at all; it should be the fear of being exposed, as consumer businesses trade on their reputation more than anything else.”

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