Lying on the internet isn't a new problem, but it's a growing one because there is a greater incentive to lie. Over the last two decades, online searches, e-commerce transactions and the value of goods imported from China have all grown dramatically. Meanwhile, Amazon, Alibaba, and Alphabet (the parent company of Google) have matured into three of the world's 10 most valuable companies.
E-Commerce Retail Sales as a Percent of Total Sales
The relationship between these companies is complex and interconnected. For example, third-party sales on Amazon have grown from $0.1 billion to $160 billion over the last 20 years, partially fueled by Marketplace sellers who resell products purchased from Alibaba (or its subsidiary, AliExpress). And Google drives a significant amount of traffic to both of these online marketplaces.
That's not to suggest that these technology giants are colluding. In fact, Amazon, Alibaba and Google have a common interest that stokes a common rivalry: to sell advertisements.
Unfortunately, the road to hell is lined with electronic billboards.
"It is difficult to get a man to understand something when his salary depends upon his not understanding it!" - Upton Sinclair
Between 30-50% of product reviews on Amazon and Walmart are unreliable, according to an analysis by Fakespot. The rise of fake reviews echoes the rise of subprime mortgages: When the reward of being dishonest is (seemingly) greater than the risk, no single person or company is accountable: The entire system is at fault.
Zachary Crockett's exposé into how some Amazon sellers manipulate product ratings (by offering bribes in exchange for 5-star reviews) shined a light on a vast underground economy. Each participant's role in these schemes may be insignificant, yet each of these participant's incentives compounds into something bigger:
Shoppers have an incentive to get free products;
Sellers have an incentive to get good reviews;
Competitors have an incentive to level the playing field, either by employing the same tactics, or by some other unscrupulous means (e.g. bribing Amazon employees to delete reviews);
Brands have an incentive to position their products above this noise and confusion; and
Marketplaces have an incentive to offer brands the visibility they demand.
The more spam, noise and organic competition there is, the more ads are sold. As a result, a preponderance of fake reviews (and news) on platforms like Amazon, Google and Facebook may strengthen these companies more than it hurts them, at least for a while.
Don't Count on the Government to Solve Things
Less than a year ago, the U.S. Federal Trade Commission "announced its first case challenging a marketer’s use of fake paid reviews on an independent retail website." Yes, its first case.
But, tempting as it is to criticize regulators for turning a blind eye, they face an impossible task.
Amazon routinely purges ozone-producing CPAP cleaners from its marketplace, yet the same models reappear regularly with new names…and excellent reviews.
Squashing fraud on the internet is like playing a game of whack-a-mole as big as the world itself. Nearly half of Amazon Marketplace sellers are located in China, beyond the reach of U.S. laws.
Two months before the collapse of Bear Stearns, the first investment bank claimed by The Great Recession, The New York Times ran a story entitled, "Can banks self-regulate?" Clearly, the answer was no. Yet, in the face of new regulations that followed, the surviving big banks have grown bigger and more powerful than before. A similar situation may play out with big tech companies.
The Role That Technology Plays
Fake reviews are merely a type of manipulation, and manipulation is as old as time itself. But, technology has made it easier and more profitable to manipulate people at scale.
The rise of "crowdworking" marketplaces, like Mechanical Turk (owned by Amazon), allowed small businesses to access cheap international labor, and subsequently, to outsource tasks like writing fake reviews. This practice violates Amazon’s terms of service, yet indiscretions have happened.
Still, the implications of the rise of artificial intelligence (AI) are even greater.
For example, Google's Duplex technology is so believable that it fools humans into thinking they are having a phone conversation with another human. Robots that can pretend to be human...what can go wrong? AI will be used to deceive consumers and AI will be used to protect them; either way, tech wins and society bears the costs.
Where Do We Go From Here
Every generation describes the past as a simpler time. That's ironic because every technological innovation is supposed to make our lives simpler. In reality, only honesty can make our lives simpler.
Humans are capable of telling truth or lies. While we can't control the actions of others, we can control ourselves and the actions we take as individuals that can impact humanity as a whole.
Each time we form an honest bond with someone, and depend on that person in return, we become less reliant on technology and we lessen the power of villains who sit behind screens.
Machines aren’t going away, but they are learning from us - both our lies and our truths.