Fake online reviews prohibited under Australian consumer law
Fake online reviews illegal in Australia

A reader noticed glowing testimonials on the website of NannyLane Australia, which describes itself as “the Uber for Nannies”. A reverse Google image search of one review, attributed to “James & Emily T” from Sydney, led to a stock image of a couple. The reader asked whether Australian businesses are allowed to use fake images or testimonials.

What the law says

Under Australian Consumer Law (ACL), businesses are expressly prohibited from making false or misleading claims. Any representations to consumers about products and services must be “accurate, truthful and based on reasonable grounds”. The use of false testimonials is also explicitly banned: a business must not “make a false or misleading representation that purports to be a testimonial by any person relating to goods or services”.

NannyLane’s response

Guardian Australia contacted NannyLane with the reader’s findings. Co-founders Julie and Patrick Menary said that during the build of their new website, “placeholder images and sample testimonials were inadvertently left live before the final content was in place”. They confirmed the material had been removed and described the issue as a production error that “has no bearing on the standard of care our nannies provide”.

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How to report fake reviews

Before making a complaint to the Australian Competition and Consumer Commission (ACCC), consumers are expected to first try to resolve the issue directly with the business. If the business does not respond, the ACCC can be contacted with a description of the concern and links to supporting evidence. Intent does not matter: if a business publishes a false review and relies on it as a representation of their services, that is enough to constitute a false or misleading claim under the ACL.

Previous ACCC actions

The ACCC has taken action against businesses for fake reviews. In 2011, removalist company Citymove was issued an infringement notice and paid a $6,600 penalty after posting statements that testimonials were genuine when they were not. In 2015, the company paid another penalty of $30,600 for similar infringements.

The ACCC provides guidance on spotting fake reviews on its website. Given the growing use of AI-generated content, consumers should be aware that some businesses may attempt to use these tools to fabricate testimonials. The moral is to proceed with caution when relying on online reviews and to report anything suspicious to the business and then the ACCC, though the volume of online marketing makes policing difficult.

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