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 other firms under scrutiny are funeral operator Dignity, review company Feefo, and restaurant chain Pasta Evangelists.
The CMA said it is examining whether Autotrader and Feefo excluded certain one-star reviews moderated by Feefo from being published, potentially depriving consumers of a full picture of customer experiences. The Dignity investigation focuses on whether staff were asked to write positive reviews about the company's cremation services.
Just Eat is being investigated over concerns that its system “inflated certain restaurants’ and grocers’ star ratings”, while Pasta Evangelists faces questions over whether customers were offered discounts in exchange for five-star reviews on delivery apps. The CMA stressed it has not yet concluded whether any of the companies have broken UK consumer law.
Sarah Cardell, chief executive of the CMA, said: “Fake reviews strike at the heart of consumer trust… With household budgets under pressure, people need to know they’re getting genuine information.” The watchdog now has powers under the Digital Markets, Competition and Consumers Act to decide if laws have been broken without going to court, and can impose fines of up to 10% of global turnover.
Autotrader said it is cooperating fully, while Just Eat stated it is working closely with the CMA to ensure reviews are clear and transparent. Feefo expressed confidence in its compliance frameworks. Which? head of consumer rights policy Sue Davies welcomed the investigations but stressed that enforcement will be key.
