LSA Scam & Honest Businesses, Google Created a Shitty Internet? Generative AI & its Impact on Google

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How the Google Guarantee Scam Impacts Honest Businesses?
The Google Guarantee Scam is frequently perpetrated by groups of foreign nationals working in relative anonymity and looking for a quick profit. While some blame goes to these actors, the ultimate fault and responsibility lies with Google. Honest businesses have been negatively impacted by the Google Guarantee LSA scam:

• Loss of business: Some businesses have reported losing up to 70% of their business due to the scam. This is because potential customers are being lured away by fake reviews, fake business listings, and bait-and-switch tactics.
• Bait and switch scams: Many businesses have reported being victims of bait-and-switch scams. In these scams, customers are lured in by a low price quote and then charged a much higher price when the work is completed. This can damage the reputation of honest businesses and make it difficult for them to attract new customers.
• Damage to reputation: The scam can also damage the reputation of honest businesses. This is because many customers who have been scammed leave negative reviews online. This can make it difficult for honest businesses to attract new customers.
• Difficulty tracking down the scammers: Many of the people responsible for the scam are undocumented workers or do not have permanent residency. This makes it difficult for authorities to track them down and prosecute them.

Did Google’s Dominance Result in a Shitty Internet?
A recent Verge article asserts that Google's dominance in the online information ecosystem has led to a homogenization of the web, with all websites looking and feeling the same and that Google's search engine algorithms reward websites that follow certain formatting and content guidelines, which discourages creativity and originality. The reality is more complex. New mediums of delivery require adopting to user needs and whether that is Google or Tik-Tok. Business content creators should focus on producing content that will perform well with their audience.
Generative AI and the Future of Consumer Preferences and its Impact on Search
The recent emergence of new generative AI devices and interfaces, like the Rabbit virtual assistant and the GPT store raises the question of what AI interface consumers will ultimately prefer and raises the question of AIs impact on Google search. Will they choose software, hardware, app integration or a stand along ChatGPT like interface? With Google search growth stalling even small losses of users to new ways to search might have an outsize impact on Google’s path forward.
The Near Memo is a weekly conversation about Search, Social, and Commerce: What happened, why it matters, and the implications for local businesses and national brands.
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