Consumer reviews and celebrity endorsements play a major role in how shoppers choose products online. Manufacturers’ and retailers’ awareness of this fact has led them to devote much of their marketing efforts to ensuring prospective customers hear only about the positive experiences of satisfied patrons. Unfortunately, a growing illicit market has emerged that offers a shortcut to a five-star reputation without the honest work it traditionally requires. LegitScript’s Merchant Risk Solutions help online platforms restore trust and transparency in e-commerce.
October 24, 2025 | by LegitScript Folks
The Shadow Industry of Fake or Coerced Reviews
As the scope and nature of online shopping continue to expand and evolve, so do opportunities for deception. Product and seller reviews were once a dependable way for customers to share authentic experiences and help others make informed decisions. But as competition for online sales has intensified, a shadow industry has emerged around buying and selling fake testimonials and social media engagement.
Some specialized operations recruit individuals to post glowing reviews in exchange for payment or free merchandise. Others use software services that generate automated “bot” reviews in bulk. There are other services that sell bundles of thousands of likes or follows on their preferred social media platform, with options to select engagement from accounts linked to certain age demographics or regions.
Sellers of social media indicators often offer services for a wide variety of platforms and regions.
These services are cheap, easy to access, and highly effective on customer behavior. Products with inflated reviews can quickly rise in search rankings on major e-commerce marketplaces, giving false impressions to shoppers that products are trusted and popular. In turn, genuine businesses then struggle to gain visibility, while customers risk wasting money on subpar or even unsafe products.
The FTC’s Approach to Fake Reviews
Recognizing the potential for harm that fake reviews pose to consumers, the U.S. Federal Trade Commission (FTC) finalized a rule in 2024 banning the use of fake reviews and testimonials. The new rule clearly prohibits the use and sale of fake reviews under federal law to distort the information that consumers rely on to make purchasing decisions.
The FTC has also updated its guidelines on endorsements to reflect changes in digital marketplaces. Social media influencers must now disclose any financial or material relationships they have with the products they promote. Additionally, the buying and selling of fake social media followers or views with the aim of artificially inflating a merchant’s reputation is now prohibited. The Commission can now impose civil penalties against violators.
The Risk of Fake Review Services
For payment service providers, the presence of merchants involved in fake review schemes is more than a reputational concern; it can lead to regulatory scrutiny. When merchants use payment services to sell fraudulent reviews, payment processors can face consequences for enabling deceptive business practices.
LegitScript’s Merchant Risk Solutions help payment processors identify high-risk merchants early, reducing the likelihood of regulatory penalties, chargebacks, and brand damage. Our team regularly reviews merchant websites and actively monitors regulatory developments to identify emerging risks before they escalate.
By acting on these insights, payment processors can limit their exposure to fraud while helping consumers avoid products built on manipulated ratings. This reduces the market for fake reviews and creates a safer, more trustworthy online shopping environment.
LegitScript Helps You Stay Abreast of Regulatory Actions
The demand for fake review services is a testament to the intense level of competition in today’s e-commerce landscape. While fair competition benefits consumers, dishonest tactics erode that foundation of trust that makes online shopping work.
As regulators like the FTC establish new accountability frameworks, LegitScript’s analysts continue to track enforcement actions and industry changes. Together, these efforts help ensure that shoppers and payment providers can trust that products and merchants are accurately represented.
