CMA Launches Crackdown on Fake Online Reviews Targeting Major Firms
The Competition and Markets Authority (CMA) has initiated formal investigations into five prominent UK companies, including food delivery giant Just Eat and online motor platform Autotrader, as part of a significant crackdown on fake and misleading online reviews. The watchdog is examining whether these firms have violated consumer protection laws that prohibit deceptive review practices.
Companies Under Scrutiny
The CMA's probes target a diverse range of businesses: Just Eat, Autotrader, funeral services provider Dignity, customer review platform Feefo, and artisan pasta chain Pasta Evangelists. This action follows legislation implemented in April last year that bans specific tactics, such as posting fake reviews, failing to disclose paid-for incentivised reviews, and hiding negative feedback from consumers.
Sarah Cardell, chief executive of the CMA, emphasised the importance of this enforcement: "Fake reviews strike at the heart of consumer trust – with many of us worrying about misleading content when looking at reviews online. With household budgets under pressure, people need to know they're getting genuine information – not reviews or star ratings that have been manipulated to push them towards the wrong choice."
Specific Allegations Against Each Firm
The investigations focus on distinct allegations for each company:
- Just Eat: The CMA is examining whether the platform's ratings system artificially inflated star ratings for certain restaurants and grocers, potentially misleading customers about quality.
- Autotrader and Feefo: Authorities are investigating claims that Feefo, which manages reviews for Autotrader, may have hidden one-star reviews on the platform, preventing them from affecting overall star ratings.
- Dignity: The funeral firm is under scrutiny for allegedly asking staff to write positive reviews about its crematoria services, which could constitute fake endorsements.
- Pasta Evangelists: The artisan pasta chain is being probed over accusations that it offered customers discounts for leaving five-star reviews on delivery apps without proper disclosure of these incentives.
Potential Consequences and Industry Response
If the CMA determines that these companies have broken the law, it can order them to change their practices and impose fines of up to 10% of their annual global sales. In response to the investigations, an Autotrader spokesperson stated: "We endeavour always to operate as a responsible and compliant business and will co-operate fully with the CMA's investigation." Feefo expressed confidence in its compliance frameworks, noting that its platform is designed to ensure genuine consumer feedback.
Just Eat and Pasta Evangelists have been approached for comment, while Dignity was not immediately available. Consumer group Which? welcomed the investigations, with Sue Davies, head of consumer rights policy, urging the CMA to "get tough" and issue serious fines if violations are confirmed.
Broader Context and Regulatory Efforts
This crackdown follows recent CMA actions against tech giants, including securing commitments from Google and Amazon to strengthen their systems for identifying and removing fake reviews. Amazon, for instance, agreed last June to implement robust processes to detect fake reviews and sanction rogue sellers, including potential bans from the platform.
The CMA's broader efforts have involved sweeping more than 100 review publishers and sending advisory letters to 54 firms to improve compliance. According to the watchdog, 90% of these companies made changes in response, and 75% reported better understanding of the rules, highlighting the ongoing push to enhance transparency and trust in online reviews across the UK market.
