Undercover crackdown on phony online reviews

Dubbed "Operation Clean Turf," the investigation disclosed Monday that many search engine optimization firms created fake online profiles and paid freelance writers based in the Philippines, Bangladesh, Eastern Europe and elsewhere $1 to $10 for each bogus review churned out.Attorney General Eric Schneiderman said 19 firms collectively agreed to pay more than $350,000 in fines and stop posting fake reviews after being snared for violating New York laws against false advertising and deceptive business practices.

"This investigation into large-scale, intentional deceit across the Internet tells us that we should approach online reviews with caution," said Schneiderman, who called Astroturfing "the 21st century's version of false advertising."Investigators found that search engine optimization firms used sophisticated strategies to shine up clients' sometimes less-than-stellar business reputations. One posted a job listing that said: "We need a person that can post multiple reviews on major REVIEW sites. Example: Google Maps, Yelp, CitySearch."

In an effort to evade review sites' electronic filters aimed at blocking suspicious posts originating from the same computer, the ad said "Must be from different IP Internet Protocol addresses Fashion Dresses ... So you must be able to have multiple IPs."Investigators said a New York City nightclub, advertising directly for a helpful reviewer, placed an online ad that stated "we will supply the text/review. You must be able to post these without getting flagged" — identified as someone hired by the nightclub.Buffing up a stained reputation can yield big financial results. A 2011 study by Michael Luca, a Harvard Business School assistant professor, estimated that a one-star increase in a company's Yelp rating can produce a 5% to 9% increase in revenue.

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