Recently, I was in a beauty supply store when I saw the most perfect shade of lip stain. Ladies, understand how much of a find this was. Instead of going to the cash register, without even thinking about it, I pulled out my smartphone to find out what the reviews were on Amazon. That right there shows the importance of user reviews for any business.
So, I understand the temptation to possibly compensate people to write positive reviews for your business – especially, to provide validation when you are just starting out. But guess what? As the Plymouth Herald points out, that kind of action is illegal here in the U.S. unless you let people know that people are being paid to give these reviews. (But that would defeat the purpose right?)
If you don’t let the public know about the quid pro quo, you will be charged with “Deceptive Advertising” by the Federal Trade Commission. If that happens, you might find yourself facing thousands of dollars in fines. As the Cole Haan post shows, this may happen even if you simply offer a cash incentive in a social media campaign.
Don’t worry - this law doesn't stop you from asking your existing customers and even new ones to leave positive reviews and testimonials. You just can’t pay them to do so.
