- The British competition regulator is investigating five major companies for failing to stop fake online reviews.
- Investigators are checking if businesses manipulated star ratings or offered certain discounts for positive feedback.
- The watchdog now holds legal power to impose massive fines reaching 10% of total global turnover.
The Competition and Markets Authority has opened new inquiries into 5 major firms due to concerns over deceptive feedback. This regulator is examining whether Autotrader, Just Eat, and 3 other businesses failed to properly manage fake reviews. These latest actions follow similar past scrutiny of tech giants like Google and Amazon.
Specific allegations suggest that Autotrader and the review platform Feefo may have hidden negative one-star ratings. This potential suppression prevents consumers from seeing an accurate picture of seller performance. Meanwhile, Dignity is being reviewed to see if employees wrote positive reviews for its own cremation services.
Just Eat faces questions regarding systems that may have inflated restaurant star ratings on its app. Another firm, Pasta Evangelists, is under investigation for allegedly offering customers order discounts in exchange for five-star ratings. The CMA chief stated that people must have access to authentic and genuine information.
Consumer research indicates that 89% of shoppers rely on digital reviews before making any purchasing or service decisions. Recent legislation now defines certain deceptive review practices as unfair and strictly illegal. The CMA no longer needs to use courts to determine if a company has violated these consumer laws.
The total number of companies currently under investigation by the watchdog has now reached 14 separate businesses. Those found guilty of breaking the law must change their habits or face fines of 10% of revenue. Most of the companies involved have confirmed they are cooperating fully with the investigation.
Regulators emphasize that household budgets are tight, making trustworthy market data essential for every consumer. Advocacy groups argue that enforcement is necessary to stop harmful practices that erode trust. The watchdog concludes that it has given businesses enough time to voluntarily correct their systems.
