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When businesses can’t silence reviews, consumers tell the truth, new study finds
https://www.eurekalert.org/news-releases/1116798
INTRO: For years, consumers have quietly edited themselves online. A harsh review softened. A detail left out. A complaint never posted at all. New research shows that when the legal threat behind that silence disappears, the internet gets more honest, and more useful, almost immediately.
A new study published in Information Systems Research, a leading peer-reviewed journal of the Institute for Operations Research and the Management Sciences (INFORMS), finds that a federal consumer protection law fundamentally changed how Americans review businesses online. After the Consumer Review Fairness Act took effect, online reviews became more negative, more detailed and more informative, suggesting that previously suppressed criticism finally surfaced.
The law, passed in 2016, prohibits businesses from using legal threats or contract clauses to silence customer reviews. Until now, there has been little empirical evidence showing whether it actually worked. This study answers that question with data at massive scale.
Analyzing more than 2 million hotel reviews on TripAdvisor, researchers compared U.S. hotels with hotels in countries not affected by the law. The results were striking. After the law took effect, reviews of U.S. hotels dropped in star ratings, became more negative in tone and grew longer. In short, consumers said more, and said it more plainly.
“That pattern is exactly what you would expect if people had been holding back before,” researcher Aida Sanatizadeh found, adding “when legal pressure lifts, authenticity rises.”
The effects were not evenly distributed. The biggest shifts appeared among hotels with weaker reputations and hotels facing intense competition, suggesting those businesses had the most to gain from discouraging bad reviews before the law. American reviewers and long-tenured users were also far more likely to change their behavior, underscoring how legal jurisdiction and experience shape who feels safe speaking up... (MORE - details, no ads)
https://www.eurekalert.org/news-releases/1116798
INTRO: For years, consumers have quietly edited themselves online. A harsh review softened. A detail left out. A complaint never posted at all. New research shows that when the legal threat behind that silence disappears, the internet gets more honest, and more useful, almost immediately.
A new study published in Information Systems Research, a leading peer-reviewed journal of the Institute for Operations Research and the Management Sciences (INFORMS), finds that a federal consumer protection law fundamentally changed how Americans review businesses online. After the Consumer Review Fairness Act took effect, online reviews became more negative, more detailed and more informative, suggesting that previously suppressed criticism finally surfaced.
The law, passed in 2016, prohibits businesses from using legal threats or contract clauses to silence customer reviews. Until now, there has been little empirical evidence showing whether it actually worked. This study answers that question with data at massive scale.
Analyzing more than 2 million hotel reviews on TripAdvisor, researchers compared U.S. hotels with hotels in countries not affected by the law. The results were striking. After the law took effect, reviews of U.S. hotels dropped in star ratings, became more negative in tone and grew longer. In short, consumers said more, and said it more plainly.
“That pattern is exactly what you would expect if people had been holding back before,” researcher Aida Sanatizadeh found, adding “when legal pressure lifts, authenticity rises.”
The effects were not evenly distributed. The biggest shifts appeared among hotels with weaker reputations and hotels facing intense competition, suggesting those businesses had the most to gain from discouraging bad reviews before the law. American reviewers and long-tenured users were also far more likely to change their behavior, underscoring how legal jurisdiction and experience shape who feels safe speaking up... (MORE - details, no ads)