Google Files Lawsuit Against US Firm, Aims to Curb Fake Business Listings

Alphabet‘s Google on Friday sued a Los Angeles man and his companies in San Jose, California federal court, claiming he created hundreds of fake business listings on its platforms and sold them to real businesses to lure in unsuspecting customers.

Fake reviews have been a recurring problem on internet commerce sites. Google said in a statement that it filed the lawsuit against Ethan QiQi Hu to “help put an end to these types of malicious schemes.”

Hu did not immediately respond to a request for comment.

Google’s lawsuit said Hu creates sham businesses that appear in its search engine and Google Maps, using an “elaborate set of props” to verify them on video calls with the tech giant’s agents.

The lawsuit said Hu keeps a tool bench as a prop to verify fraudulent listings for garage repair, tree cutting and plumbing, and essential oils for verifying fake aromatherapy and reiki therapy businesses.

Google said Hu buys thousands of fake positive reviews to make the businesses appear legitimate. He then allegedly sells the profiles as “leads” to real businesses in the same fields, which receive contacts from potential customers who reach out to the fake businesses.

Google said Hu created more than 350 false profiles bolstered by over 14,000 illegitimate reviews.

The lawsuit accused Hu of false advertising, unlawful business practices and violating Google’s terms of service. Google asked the court for an unspecified amount of money damages and an order to block Hu’s alleged misconduct.

The case is Google LLC vs Hu, US District Court of the Northern District of California, No. 5:23-cv-02964.

© Thomson Reuters 2023


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Consumer Affairs Ministry Says Will Develop Framework to Protect Online Consumers From Fake Reviews

The government on Saturday said it will develop a framework to keep a check on fake reviews posted on e-commerce websites to protect consumer interest. The consumer affairs ministry along with the Advertising Standards Council of India (ASCI) held a virtual meeting on Friday with stakeholders, including e-commerce entities, to discuss the magnitude of fake reviews on their platforms.

Fake reviews mislead consumers into buying online products and services.

According to an official statement, the Department of Consumer Affairs (DoCA) will develop these frameworks after studying the present mechanism being followed by the e-commerce entities in India and best practices available globally.

Consumer forums, law universities, lawyers, FICCI, CII and consumer rights activists, among others, participated in the meeting to discuss the magnitude of the problem and roadmap ahead for fake reviews on websites.

Since e-commerce involves a virtual shopping experience without any opportunity to physically view or examine the product, consumers heavily rely on reviews posted on platforms to see the opinion and experience of users who have already purchased the goods or service.

“Traceability by ensuring the authenticity of the reviewer and the associated liability of the platform are the two key issues here. Also, e-commerce players must disclose as to how they choose the ‘most relevant reviews’ for display in a fair and transparent manner,” Consumer Affairs Secretary Rohit Kumar Singh said.

All stakeholders agreed that the issue deserves to be monitored closely and appropriate framework governing the fake reviews should be developed for protection of consumer interest, the statement said.

Stakeholders from e-commerce companies claimed they have frameworks in place by which they monitor fake reviews and would be pleased to take part in developing a legal framework on the issue, it added.

Nidhi Khare, additional secretary and Anupam Mishra, joint secretary in the Department of Consumer Affairs also attended the meeting.

Manisha Kapoor, CEO, ASCI highlighted the categories of fake and misleading reviews and their impact on consumer interest.

The issues discussed in the meeting included how paid reviews, unverifiable reviews and absence of disclosure in case of incentivised reviews make it challenging for consumers to recognise genuine reviews.


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