Regulators target fake and misleading online reviews

First published by Author on October 23, 2019 in the following categories: Advertising Consumer Law and tagged with advertising | cma | comparison sites | competition law | investigations | market abuse

The CMA (Competition and Markets Authority) is targeting fake and misleading online reviews because of the unfair impact it can have on competition within markets.

Nowadays, where most things can be bought and sold online, so can testimonials for products and services, and it’s this practice that the CMA’s aiming to stop. With how much influence the statements of other customers can have when it’s never been easier to shop around quickly, it seems that some companies are prepared to try and influence consumer choice with the power of fake reviews.

At the same time, it can be just as easy for someone to pay for bad reviews to hit one of their competitors as well.

Tacking the sale of fake and misleading online reviews

The CMA is in discussion with online platforms in efforts to tackle the sale and use of fake and misleading online reviews.

Initially, the CMA has reported to have written to Facebook and eBay over the summer and asked them to review their sites in efforts to prevent such reviews being sold and used. Both companies have indicated that they’re prepare to cooperate with the regulator, which is a positive step forward.

Importantly, there are no allegations that either of the companies are intentionally allowing these kinds of reviews on their websites. What the CMA’s trying to do is work proactively with companies in efforts to stop such practices being pursued.

Troubling evidence found

This latest effort to tackle such behaviour comes after previous actions to stop consumers from seeing misleading information on sellers’ websites.

In terms of the most recent developments, the CMA said that it had found “troubling evidence” of a “thriving marketplace” for fake and misleading online reviews.

Sweeps of the internet from November 2018 to June 2019 identified over 100 eBay listings that were offering services for fake reviews. There were also said to be 26 Facebook groups where people were offering to write fake reviews for businesses as well.

This is an important problem to tackle in efforts to ensure that organisations in all markets are not in breach of important competition laws. Using underhanded tactics like paying for good reviews for your own business, or bad reviews for competitors, is a practice that must be stopped. With the help of platforms who can prevent their sites being used to peddle such practices, it’s a problem that can hopefully be stopped.

CMA reaches out to businesses

The CMA has also reached out to businesses who have been contacted by people who are trying to sell fake and misleading online reviews.

They’re asking businesses who may have had agreements with such people to contact them on onlinereviews@cma.gov.uk.