Major UK Firms Under Scrutiny for Online Review Practices
The Competition and Markets Authority (CMA) has initiated formal investigations into five prominent UK companies, including food delivery service Just Eat and automotive platform Autotrader, as part of a significant crackdown on deceptive online review practices. The watchdog is examining whether these businesses have violated consumer protection laws that prohibit fake and misleading reviews.
Companies Under Investigation
The CMA's probes target a diverse range of firms: Just Eat, the food delivery giant; Autotrader, the online vehicle marketplace; Dignity, a funeral services provider; Feefo, a customer feedback platform; and Pasta Evangelists, an artisan pasta chain. This action follows the implementation of stricter regulations in April last year, which banned practices such as posting fake reviews, failing to disclose paid-for incentivised reviews, and suppressing negative feedback.
Specific Allegations and Concerns
Each company faces distinct allegations. For Just Eat, the CMA is investigating whether its ratings system artificially inflated star ratings for restaurants and grocers, potentially misleading consumers about quality. Autotrader and Feefo are under scrutiny for allegedly hiding one-star reviews on the car site, which were moderated by Feefo and excluded from overall star ratings. Dignity is being examined over claims that staff were asked to write positive reviews about crematoria services, while Pasta Evangelists is probed for reportedly offering discounts to customers for leaving five-star reviews on delivery apps without proper disclosure.
Regulatory Stance and Potential Penalties
CMA Chief Executive Sarah Cardell emphasised the importance of consumer trust, stating, "Fake reviews strike at the heart of consumer trust – with many of us worrying about misleading content when looking at reviews online." She added that with household budgets under pressure, people need genuine information to make informed choices. The CMA has warned that if violations are found, companies could face orders to change their practices and fines of up to 10% of their annual global sales.
Industry Response and Broader Context
An Autotrader spokesperson responded, "We endeavour always to operate as a responsible and compliant business and will co-operate fully with the CMA's investigation." This move follows recent CMA actions against tech giants like Google and Amazon, which committed to enhancing systems to detect and remove fake reviews. Amazon, for instance, agreed last June to implement robust processes and sanctions, including bans for sellers involved in bogus reviews.
Consumer Advocacy and Compliance Efforts
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 rules are broken. The CMA reported that as part of its clampdown, it reviewed over 100 review publishers, sent advisory letters to 54 firms, and saw 90% make compliance improvements, with 75% indicating better understanding of the regulations.
