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 probe also covers 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 moderated by Feefo from publication, potentially denying consumers a full picture. The Dignity investigation focuses on whether staff were asked to write positive reviews about cremation services. Just Eat is under scrutiny over concerns its system inflated certain restaurants' and grocers' star ratings, while Pasta Evangelists is being investigated for allegedly offering discounts in exchange 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 company broke consumer law, but the latest crackdown brings the number of businesses under review to 14.
The CMA gained new powers under the Digital Markets, Competition and Consumers Act last April, which banned certain review practices as “unfair and illegal”. It can now decide if consumer laws have been broken without going to court, and can 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 fully with the investigation. Just Eat said it is working closely with the CMA to ensure reviews are clear and transparent. Feefo expressed confidence in its compliance frameworks and said it looks forward to contributing to the CMA's work.
