Amazon.com, Inc. has filed legal charges against five fraudulent websites, producing fake reviews on Friday at Washington state court. The company tries to eliminate these fake reviewers for quite some time to protect their brand’s image from being “tarnished” by a “small minority of sellers.”    

Here are some of the sites involved in the case: Jane John-Nwankwo, owner of PaidBookReviews.org; Chris Embry, a resident of New York and accused CEO of AmazonVerifiedReviews.com; ReviewConnections.com, AmazonReviewStar.com, and BuyAmazonReviews.info.

These alleged sites are posting fake reviews of products and services of Amazon to increase ratings for products at a certain set of price. It aims to turn all efforts into a money-making scheme.

However, the company remained confident that this group of sellers and manufacturers could not bring such damage. Thus, it made an assurance that legal options are working to cease the fraudulent platforms.  

In turn, their move was able to turn down some reviewers and sellers from accessing the sites. Although Amazon has put an effort to assure customers that some of the reviews posted on the site might not be true. Hence, the company has the knowledge towards frequency in which new review-abuse websites arises.

There were similar incidence that was seen last year, and Amazon was able to shut down multiple websites, which are posting fake reviews as well. One of these was Fiverr, which allows individuals to sell and exchange fake glowing product reviews costing $5.


Subsequently, the company has filed legal charges against nearly 1,000 sellers involved in the site.

It appears that Amazon has now filed about 1,000 defendant suits since last year in the concept of “review abuse,” and it is expected to continue on shutting down fraudulent platforms compromising its image, by aiming for “parties” as well, which were not directly stated in the case.

Furthermore, many believed that Amazon will be able to turn down all these reviewers and sellers by taking an action to reduce the number of fraudulent schemes. Meanwhile, Amazon currently holds its third case targeting companies which do money-making by means of selling fake reviews. Thus, the five websites, along with their operating individuals were filed with charges on the basis of trademark infringement and other allegations.

Amazon To Report Earnings

Analysts are closely watching the market as Amazon.com, Inc. is scheduled to report earnings on April 28. The estimated earnings per share (EPS) of the company settled at $0.60, which rallied by about $0.72 or 600.00% compared to an EPS of $-0.12 in 2014.


The company is expected to post a profit of $285.56M, giving the stock a P/E of 257.03 in the case that its EPS settled at $0.60.

Meanwhile, company shares posted an EPS of $1.00 in the prior quarter, while analysts forecast recorded at 40.00% negative EPS growth. The stock declined by about 1.49% or $9.32 after the market close, hitting $616.88.     

Shares amounting 2.52M traded hands. Company shares were seen rallying by about 12.49% since September last year and is uptrending. It has outperformed the S&P 500 by 6.15%.    

Among 40 analysts which covers Amazon.com, 40 analysts of which gave a “Buy” rating, 0 issued a “Sell” rating, and 5 affirmed a “Hold” rating, suggesting a positive percentage of 89%.

Many research firms currently weigh in on the Amazon’s stock. JP Morgan maintained an “Overweight” rating. Stifel Nicolaus maintained a “Buy” rating.

Subsequently, the institutional sentiment was down to 1.31 in the fourth quarter of 2015. It gained losses of 0.18, from 1.49 in the third quarter of 2015. The ratio posted negative as 62 funds sold all shares of Amazon while 467 lowered their positions.