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August 3, 2024

Fair or fake? Businesses offering freebies for positive online reviews draw mixed reactions

The Consumer Protection (Fair Trading) Act 2003 in Singapore prohibits unfair trade practices, which include the posting of fake reviews. Businesses found engaging in such practices can face enforcement actions such as court orders and injunctions. When it comes to the practice of incentivised reviews, experts recommend that businesses and customers mark the reviews as incentivised or sponsored, perhaps by using a hashtag as an indication. Senior lecturer Ms Leung Sau Yee from SP's School of Business said that when it comes to incentivised customer reviews, “While businesses can be dangling carrots for glowing reviews, consumers are ultimately the ones who decide whether or not to provide authentic reviews.” Ms Leung also said that customer reviews are a “double-edged sword”. They may provide valuable insight into the brand, but they are based on consumer perception, which is subjective and “sometimes biased”. She added that “It is also inevitable that some of the reviews may not be fully authentic due to a variety of reasons, from businesses providing incentives for five-star reviews to family and friends of businesses wanting to show support.” On the offering of freebies specifically for five-star reviews, she said that it can be an unfair practice. Marketing course chair from TP's School of Business, Ms Felicia Wee, said that ethical marketing must be grounded in principles of honesty and transparency. She advised consumers to exercise judgement when it comes to trusting online reviews. She also suggested checking the date when the reviews were posted. This is because a business can change over time, so recent reviews would be more indicative of the current experience offered.

[TODAY]

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