Edmunds.com Reaches Settlement with Company Accused of Submitting Fraudulent Car Dealer Ratings and Reviews
Santa Monica, Calif. - Edmunds.com reached a settlement agreement with Humankind Design Ltd., which stood accused of fraud and breach of the Edmunds.com membership agreement in a lawsuit filed last month in Texas. Edmunds.com filed the suit after it investigated Humankind's registration of almost 2200 fake member accounts on the site, which Humankind used to attempt to submit content to sway car shoppers' opinions on Edmunds.com's dealer ratings and reviews pages.
As part of the settlement with Edmunds.com, Humankind agrees to:
Submit to a permanent injunction agreeing not to register users on Edmunds.com, not to submit reviews, not to participate in Edmunds.com's online community, and not to breach the site's membership agreement.
Provide Edmunds.com with information concerning all member accounts they registered and all reviews they submitted to Edmunds.com.
Pay an undisclosed sum toward Edmunds.com's legal fees.
"This is undoubtedly a victory not just for the millions of online users who rely on dealership reviews and ratings from fellow car shoppers, but also for the thousands of honest dealers who embrace authentic customer feedback," said Seth Berkowitz, president and COO, Edmunds.com. "We will continue to hand screen every review submitted to our site, and we will not hesitate to push back against anyone who tries to compromise the terms of our user agreements."
Humankind's own marketing materials had previously identified 15 review sites on which it was prepared to post reviews similar to those Edmunds.com alleged were fraudulent. Humankind's "supported site" list included Google+, Yelp, Foursquare, Yahoo! and Citysearch. Edmunds.com is proactively providing each of the listed sites with a copy of the permanent injunction that has been agreed to by Humankind so that they can determine for themselves whether action is needed to protect their own consumers.
Edmunds.com has devoted considerable resources to ensuring the integrity of its ratings and reviews data and has successfully shut down other abusive and inappropriate activity throughout the existence of its online forums, which date back to 1996. And, in July 2011, the company warned consumers about online vehicle purchase escrow scams that misappropriated use of the Edmunds.com name. Edmunds.com's efforts in that instance helped the FBI uncover the criminal operation running the scam.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →