BonsaiForest
Since: Jan, 2001
#3: Aug 27th 2012 at 1:29:28 PM
Reviews for an unknown product can be a good source of information on what you might think about it, particularly if there aren't any professional reviews available. For big name stuff, or anything that's been professionally reviewed, I'd agree with you. But this service is being abused by unknown authors who are trying to make a name for themselves. The article mentions that a number of authors saw sales go up after the fake reviews were added.
Total posts: 3

http://www.nytimes.com/2012/08/26/business/book-reviewers-for-hire-meet-a-demand-for-online-raves.html?pagewanted=all
is the article, and it's a nice, in-depth one.
It's apparently been quite the machine for a while. The reviewers at one point where told to buy the books from Amazon, so "Amazon Verified Purchase" would show up, and increase their credibility (admittedly, I tended to assume myself that verified purchases were legit reviewers). Also, the reviewers tended to be numerous, so they'd have tons of reviews under the name, rather than it being a case of someone signing up, reviewing only 3 products plus the book in question, and never using the site again (a telltale sign of a faker).
There are potential problems with real (negative) reviews drowning out fake (positive) ones over time, as people buy the book based on the early fake reviews. But authors tended to want these fake reviews for $100 rather than paying Kirkus $450 for an honest review that might bash the book.
The guy who started the review service himself commented on the article, saying this:
I did the right thing in being honest with Streifeld about the mistakes I made with the review business in the past. The service I offer now is a legitimate, affordable way for self-published authors to get real reviews and exposure.
edited 27th Aug '12 9:04:36 AM by BonsaiForest