The Competition and Markets Authority is worried that small businesses that abide by the law might be losing customers to firms on Amazon and Google that use fake five-star reviews. Even though both firms say that they have policies and reroutes to stop fake reviews, they could face legal action if found breaking consumer law.
The CMA has launched a formal probe after an initial investigation conducted last year, questioning whether the companies were doing enough to protect their customers. As online shopping has had a massive boom during the pandemic, most businesses have been forced to sell their items online to survive.
“Our worry is that millions of online shoppers could be misled by reading fake reviews and then spending their money based on those recommendations,” said CMA chief executive Andrea Coscelli.
“Equally, it’s simply not fair if some businesses can fake five-star reviews to give their products or services the most prominence, while law-abiding businesses lose out. It’s important that these tech platforms take responsibility and we stand ready to take action if we find that they are not doing enough,” she added.
The CMA is also examining whether Amazon and Google are prompt in investigating and removing fake or misleading reviews, including the sanctions being placed on users.
The CMA also expressed its concern over the fact that Amazon’s systems “have been failing adequately to prevent and deter some sellers from manipulating product listings, for example, by co-opting positive reviews from other products.”
