Nextdoor CEO argues real-world reputation is key to fixing fake online reviews
The CEO of Nextdoor, who earlier co-founded review site Epinions, says the online reviews industry has been undermined by cheaply fabricated ratings. He argues that platforms like Nextdoor, which rely on real identities and local trust, can restore credibility. He notes that most consumers suspect reviews are fake and want to know who is behind them.
The Federal Trade Commission’s 2024 rule specifically targets deceptive practices like undisclosed paid endorsements and the sale of fake reviews, marking a significant regulatory shift in the industry. This follows years of platforms removing hundreds of millions of fraudulent reviews, yet the problem persists due to the low cost of manufacturing anonymous ratings. A 2025 study from Nottingham University Business School found AI-generated fake reviews are now indistinguishable from real ones, both to human readers and other AI models, complicating enforcement efforts.
Nextdoor’s model differs from traditional review platforms by anchoring recommendations to real identities and local social networks, creating a system where reviewers face social consequences for bad advice. Early research from consumer-insights platform Echo indicates 81% of respondents would trust a recommendation more if the person making it were held socially accountable. This approach addresses the core issue that anonymous star ratings cost nothing to fake and carry no penalty when exposed, while accountable written recommendations give reviewers a reputational stake in their endorsements.
This shift toward identity-based reviews could significantly alter how consumers evaluate local businesses and how companies manage their online reputations. If trust becomes tied to social accountability rather than anonymous ratings, small businesses may benefit from more authentic feedback, while consumers gain clearer signals about recommendation reliability. However, this model may also create pressure on individuals to avoid negative reviews for fear of social friction, potentially skewing feedback. The growing role of AI in generating indistinguishable fake reviews suggests verification challenges will likely intensify, making provenance and human accountability increasingly valuable.