The UK Competition and Markets Authority (CMA) has launched an investigation into fake and misleading online reviews, as more people turn to online shopping during lockdown. The CMA aims to determine whether online retailers are adequately safeguarding customers and has warned of potential legal action if websites fail to comply with the law.
Andrea Coscelli, the CEO of the CMA, emphasized the importance of genuine online reviews, stating, During lockdown, we’re more dependent than ever on online shopping, so it’s really important that the online reviews we read are genuine opinions. Coscelli highlighted the risk of customers being deceived into purchasing products or services that do not align with their expectations due to fake or misleading reviews.
Under consumer protection law, fake and misleading reviews are illegal, and the onus is on websites to adhere to these rules. Traders are prohibited from posing as consumers and generating positive feedback through incentives or other means. The CMA estimates that these online reviews potentially influence around £23 billion ($28 billion) of annual consumer spending in the UK.
The investigation will cover various areas, although the specific websites under scrutiny have not been named by the CMA. However, previous discussions regarding the sale of fake reviews have taken place with major platforms such as Facebook, eBay, and Instagram. Instagram has committed to addressing the issue, while the CMA has already discovered instances of the buying and selling of fake reviews within Facebook groups and on eBay.
For purposes of clarity, the CMA clarified that it is not currently alleging any website’s illegal activity. If enforcement action is necessary, the CMA will publicly reveal the names of noncompliant websites. Last year, consumer group Which? identified 55,000 posts on Amazon offering free products in exchange for positive reviews within just one month.
According to a spokeswoman for Which?, it is encouraging to see regulators focusing on review sites. The consumer group insists that online platforms must take responsibility for mitigating this problem. To support the investigation, Which? plans to furnish the CMA with additional evidence that they hope will contribute to appropriate action against platforms failing to fulfill their consumer protection responsibilities.
In summary, the CMA’s investigation seeks to address the proliferation of fake and misleading online reviews, with a particular focus on protecting consumers during lockdown. By holding websites accountable for adherence to consumer protection regulations, the CMA aims to ensure that online shoppers can trust the authenticity of the reviews they rely on when making purchasing decisions.
