New York Attorney General Andrew Cuomo announced yesterday that Lifestyle Lift, a cosmetic surgery company providing “facial-firming procedures,” will pay $300,000 in penalties and costs for publishing false reviews of the company and its procedures on the Internet. The company must also cease posting fake reviews and testimonials online and clearly disclose Internet content for which they are responsible.

Lifestyle Lift felt that negative online feedback had hurt its reputation, so the company launched an aggressive in-house brand management campaign. Employees were instructed to pose as satisfied customers on message boards and forums and to criticize or attempt to remove posts that were critical of Lifestyle Lift. The company also created several blogs and websites on which employees posted positive reviews. The sites did not disclose that they were run by Lifestyle Lift. (Examples of the reviews can be downloaded at http://www.oag.state.ny.us/bureaus/internet_bureau/pdfs/LifestyleLiftStories.pdf.)

The Lifestyle Lift settlement is the first case in the United States to address the issue of companies posing as consumers and posting false reviews of products or services, also known as “astroturfing.” This practice is an extreme tactic avoided by Apogee Search and (I hope) other reputable search marketers, but the Lifestyle Lift case has important implications for less aggressive brand management and search engine optimization campaigns.

• Don’t forget advertising laws and regulations. Search marketing campaigns gone wrong can have consequences more dire and expensive than search engine penalties. Most companies are very aware that they must keep Federal Trade Commission, state, and local regulations in mind when advertising through traditional media, but some forget that advertising online is no different. Keep regulations in mind and be aware of what you can and cannot say when creating campaigns and messaging, particularly if your company does not have a legal department to review marketing materials.

  For more information, see “FTC Guides Concerning Use of Endorsements and Testimonials in Advertising” and general information on “truth-in-advertising laws” at http://www.business.gov/business-law/advertising-law/truth-in-advertising/. Certain products and services, especially those related to health and medicine, may also be subject to additional regulations.

• Be transparent. Concealing your affiliation with a company during online marketing efforts can lead to a damaged reputation, embarrassment, and legal penalties in extreme cases like the Lifestyle Lift settlement. Some websites, particularly Q&A sites like Yahoo! Answers, may also ban you and/or your IP address if you frequently endorse a product or service without disclosure.

  Always mention that you represent the company that you are endorsing when requesting links, commenting on blog posts, or posting in forums. This disclosure may cause some of your posts or comments to be taken down, but in the end, you will avoid potential fraud allegations and resentment from visitors who learn of the dishonesty. Disclosure is especially important on microsites and blogs; make it obvious that your company has a hand in the website.

• Respond to negative feedback. Lifestyle Lift dealt with negative online feedback by trying to squash it. Instead, use negative feedback as an opportunity to communicate with your customers. Respond to negative posts on forums or blogs with apologies and attempts to rectify the situation (perhaps offer a gift card or advice for fixing a product). If these negative comments show up in search results, visitors will also see that your company cares enough to respond to dissatisfied customers. If your company has experienced a public relations nightmare and the Internet is flooded with negative comments, consider creating a microsite dedicated to telling your company’s side of the story (but remember to disclose that your company created the site!).

  Many companies are also using social media as an avenue for responding to negative feedback. Search Twitter, Facebook, and other social media outlets for negative comments about your company and respond directly to the posters with advice and/or offers of recompensation. Some companies have also setup Twitter accounts specifically for customer support questions. For examples of how some businesses are using Twitter to communicate with customers, see http://www.searchenginejournal.com/16-examples-of-huge-brands-using-twitter-for-business/7792/.

• Create listings but not reviews on review sites. Listings on sites that allow users to leave reviews can generate traffic and word-of-mouth about your business. These sites are most effective for B2C establishments with physical locations. Some of the most popular review sites are Yelp, Yahoo! Local, Google Local, and Citysearch.

  It is perfectly acceptable to list your business locations on these sites, but leave the reviews to the users. These websites can use IP addresses to determine if your company is reviewing itself, and this can lead to you being banned from the site. Also, if users realize that your employees are reviewing the company, this can lead to more damaging press than a negative review.

• Ensure that everyone knows what can and cannot be said. Make sure that employees who might post online about the company know the rules of your marketing message. Reinforce that everyone should disclose their affiliation with the company when posting comments online. Employees may even want to refrain from leaving comments on review sites to avoid potential problems.

This entry was posted on Thursday, July 16th, 2009 at 6:19 am by Darby Tober and is filed under Current News, Natural Search (SEO), Online Reputation Management, Search Engine Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.