Where better to turn than an online blog or forum where consumers have posted their experiences with products or services? It's a quick, simple, and accurate way of assessing a potential purchase, right? Well, all except for the last bit. In fact, what many of today's online users don't realise is that a good number of those raving reviews on stereo systems and cars are posted by none other than the makers of those stereo systems and cars.
However, thanks to a new law passed by the British Parliament, companies advertising in the UK will soon have to steer clear of shill reviews and "flogs", or phony blogs. The new British law, which will take effect on December 31, 2007, prohibits people from posting reviews of their own products under false names. The law applies to all types of product postings, ranging from those of authors who review their own books on Amazon.com to marketers who create phony blogs to promote their products. But can we expect to see similar legislation in the US? After all, in the last few months, several US companies - including Wal-Mart and Sony - have landed in hot water for creating "flogs". Many lawyers doubt such a move, based on allowances of the First Amendment which generally enable people to write under pseudonyms. And while commercial speech holds a lower bar of protection than non-commercial speech, distinguishing between the two isn't always so simple.
Eric Goldman, director of the High Tech Law Institute at the Santa Clara University of Law said:
"What we're going to see is one-off regulatory solutions. We could have a very carefully crafted point solution to deal with faux blogging. However, marketers would probably find ways around such narrow rules. It will be a very easy thing to game," he predicted.
So, while UK consumers can soon expect genuine feedback on consumer blogs and forums, their US counterparts are seemingly better off sticking to good old, literal word-of-mouth.
