Fake reviews are eroding digital trust and impacting retailers’ revenue

Fake reviews are eroding digital trust and impacting retailers’ revenue

Dubai, United Arab Emirates – We may have entered a post-truth world, but the damage being caused by fake reviews is very real. Callsign, the digital trust pioneer, has today delivered a stark warning to the industry: tackle fake reviews or get ready to see sales drop.

Counting the Cost

Impacting digital trust and ultimately leading to a loss of revenue for brands and retailers, unverified users leaving fake reviews is becoming a widespread problem.

A recent report by World Economic Forum indicates that online reviews influenced a staggering $3.8 trillion of global e-commerce spending in 2021. As products fail to live up to these bogus reviews, consumers’ trust is dwindling, with many saying they trust online reviews less than they did just 12 months ago.

Especially concerning for retailers was the revelation that if consumers suspect a product has fake reviews, 28% stated they would no longer trust that brand, and 25% would not purchase from the website.

A Growing Concern

Callsign adds that action must be taken quickly: with the problem of fake reviews set to expand unless new solutions are put in place. Self-reported figures from leading e-commerce sites show that around 4% of all online reviews are fake.

Even trusted online retailers are