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But company investment disclosures say that 'we cannot guarantee the accuracy of our reviews.' Angie's List tells consumers that it provides 'reviews you can trust,' and takes steps to detect and remove fraudulent positive and negative reviews. But almost 70 percent of the company's revenues come from advertising purchased by the service providers being rated. But experts who study survey techniques say that can create a bias for positive reviews.Īngie's List misleads consumers by prominently promising that 'businesses don't pay' and that it's a consumer-driven service supported by membership fees. But Angie's List marketing materials intended for businesses say that companies that advertise get 'an advantage of increased exposure' that 'can propel you ahead of your competition.' They get 12 times more profile views than companies that don't buy ads.Īngie's List encourages businesses to solicit reviews by giving customers free, postage-paid forms, stickers on thank you notes, and Web links embedded in e-mail invoices. Cheryl Reed, a spokeswoman for the company, disagrees.

Caveats: We think that the ability of A- and B-rated companies to buy their way to the top of the default search results skews the results.

They also have to affirm that the information they provide is true and accurate and that they're not an employee, competitor, or in any way related to the service provider. After they hire a business, they're asked to rate it based on nine measures.

When they get two reviews and a B average or better, and there are no alerts about them, they can pay to advertise and must offer discount coupons that 'position your business to rotate on page 1 of search results,' Angie's List says.Ĭonsumers subscribe to gain access to highly rated service providers.

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How it works: Companies set up free online profiles or involuntarily get one when a member rates them.Cost for consumers: Varies $46 a year in San Francisco.

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