Major update on fake reviews crackdown as industry regulator warns half of companies not complying with the law
In April new guidance to crack down on hidden booking fees, admin costs and fake reviews was introduced by the Competition and Markets Authority (CMA).
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As part of the rules companies had to include all mandatory fees in the total headline price of an item, rather than feeding them through at different stages of the booking process, which is known as 'drip pricing'.
They also needed to crack down on glowing fake reviews of products and services.
The investigation is important as around 90% of shoppers base what products they buy on online reviews, with £217billion spent in the online retail sector in 2023.
A three month adjustment period was introduced to give businesses the chance to understand the new rules and make any necessary changes.
This period ended earlier this month and the CMA has now completed a review of the websites of more than 100 businesses.
It checked to see if businesses had published policies on their websites to stop fake reviews or explained to customers what their policy on fake reviews is.
For example, they need to explain if they pay customers or give them discounts to write a positive review.
They should outline if they ban fake reviews or make it clear to customers if they allow them by labelling them.
The investigation found that more than half of these businesses could be failing to comply with the CMA's guidance.
Some of the companies had no policy in place to ban fake reviews, and the CMA also could not find a policy setting out their approach to the reviews.
Others had policies in place but they were not clear, incomplete or difficult to understand.
Rocio Concha, Which? director of policy and advocacy, said: "Fake reviews can trick consumers into buying products and services that are duds, while taking business away from honest firms playing by the rules, so it's very concerning to see so many firms still failing to comply with regulatory guidance."
She added that the regulator needs to do more to prevent fake reviews.
She said: 'Based on this investigation, the regulator must get tougher with firms, using these new powers to send a clear message that these types of consumer rip-offs won't be tolerated."
How to save money shopping online
Consumer reporter Sam Walker reveals a few ways you can save money on your next online shop.
Use cashback websites - use cashback websites like TopCashback and Quidco where you can get free cash on top of any qualifying purchases.
Compare prices - make sure you compare prices to ensure you're getting the best deal. You can use websites like Trolley, Price Spy or Price Runner.
Factor in delivery costs - plenty of retailers charge you for delivery, even standard delivery, so make sure you read the small print before putting an order in. Some will waive any delivery charges if you spend over a certain amount.
The CMA is writing to the 54 firms that failed to meet its guidance to explain that they must have measures in place to prevent fake reviews from appearing on their websites.
They also need to have policies that are clear and easily accessible.
The companies will also need to review their guidance to see if any changes to their approach and policies are needed.
Any company that is sent a letter from the CMA will need to respond and explain what changes, if any, they have made or are making in order to comply with the law.
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