The UK Competition and Markets Authority (CMA) has launched investigations into five companies, including Autotrader and Just Eat, over concerns they have not done enough to tackle fake and misleading online reviews. The watchdog is also looking into funeral operator Dignity, review company Feefo, and restaurant chain Pasta Evangelists.
The CMA said it is examining whether Autotrader and Feefo excluded some one-star reviews from being published, potentially giving consumers an incomplete picture. The Dignity investigation focuses on whether staff were asked to write positive reviews about the company's cremation services. Just Eat is being probed over concerns its system inflated certain restaurants' and grocers' star ratings, while Pasta Evangelists faces questions over offering discounts for five-star reviews on delivery apps.
“Fake reviews strike at the heart of consumer trust,” said Sarah Cardell, CMA chief executive. “With household budgets under pressure, people need to know they’re getting genuine information – not reviews or star ratings that have been manipulated.” The CMA has not yet concluded whether any companies broke consumer law, but the latest crackdown brings the number of businesses under review to 14.
Last April, the CMA gained new powers under the Digital Markets, Competition and Consumers Act, banning certain review practices as unfair and illegal. The watchdog can now enforce consumer laws without court action and impose fines of up to 10% of global turnover. Sue Davies of Which? said: “Investigations are a welcome first step, but enforcement will be key: the regulator must be prepared to get tough and issue serious fines.”
Autotrader said it is cooperating with the investigation, while Just Eat stated it is working closely with the CMA to ensure reviews are transparent. Feefo expressed confidence in its compliance frameworks and said it looks forward to contributing to the CMA's work.
