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Fake online reviews under investigation by competition authority

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Fake online reviews under investigation by competition authority

This illustration shows a five-start review being posted in a colourful, cartoon formatPicture copyright
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The UK Competition and Markets Authority (CMA) has launched an investigation into faux and deceptive reviews on a number of main web sites.

It mentioned it will study whether or not online outlets have been “doing sufficient” to guard prospects as they flip to online procuring throughout lockdown.

The authority warned it will “not hesitate” to take motion if websites are disobeying the legislation.

That might embody taking main retailers to court docket.

“Throughout lockdown, we’re extra dependent than ever on online procuring, so it is actually necessary that the online reviews we learn are real opinions,” mentioned CMA chief govt Andrea Coscelli.

“If somebody is persuaded to purchase one thing after studying a faux or deceptive assessment, they may find yourself losing their cash on a services or products that wasn’t what they wished.”

Some reviewers are supplied cash or different incentives in alternate for constructive feedback.

However faux and deceptive reviews are unlawful under shopper safety legislation – which bans merchants from pretending to be customers of their very own merchandise, for instance. The CMA holds web sites answerable for adhering to the foundations.

Final 12 months the CMA estimated that estimated that online reviews probably affect £23bn ($28bn) of UK buyer spending yearly.

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The brand new investigation will cowl areas comparable to:

  • suspicious reviews, the place one individual has reviewed “an unlikely vary” of merchandise
  • if companies are manipulating reviews – eg by combining good reviews for a number of merchandise collectively
  • paid-for reviews, and the way they’re dealt with by web sites.

The CMA declined to call the precise web sites it was investigating, however highlighted earlier discussions with Fb, eBay and Instagram on the subject.

It mentioned Instagram had dedicated to tackling the marketplace for faux reviews on its platform.

The CMA had additionally discovered the shopping for and promoting of faux reviews in Fb teams and on eBay.

The regulator mentioned it was “not at present alleging that any web site has acted illegally” – however would identify and disgrace web sites later if it needed to take enforcement motion towards them.

Final 12 months, the buyer group Which? mentioned that within the area of a single month, it had discovered 55,000 posts providing free merchandise to those that wrote good reviews on Amazon.

“It’s good to see the regulator turning its consideration to assessment websites,” a spokeswoman for Which? mentioned.

It mentioned online platforms wanted to take duty for the issue.

“We’re offering additional proof to the CMA that we hope will show helpful within the subsequent part of its investigation – and we count on the regulator to take applicable motion towards platforms discovered to be falling brief of their obligations to guard customers.”

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