Google has been taken to task by the Competitions and Markets Authority (CMA) over the ability of consumers to trust in its reviews. In response the search giant has committed to introducing enhanced processes to tackle fake and misleading reviews. It has also agreed it will enforce sanctions on organisations who attempt to benefit from writing fake or misleading reviews.
Consumer group Which! estimate 89% of consumers use online reviews when researching products and services. As part of its investigation, the CMA suggests as much as £23 billion annually is spent in support of potentially influencing online reviews.
The CMA launched its investigation over concerns it was breaching consumer law by failing to take action over potentially fake and misleading reviews. The accusations levelled at Google included
- not doing enough to detect and remove fake reviews
- failing to act on suspicious patterns of behaviour
- failing to properly sanction reviewers and businesses who take part in fake review activity.
Sarah Cardell, Chief Executive of the CMA, said:
When it comes to tackling fake reviews, Google is leading the way. Left unchecked, fake reviews damage people’s trust and leave businesses who do the right thing at a disadvantage.The changes we’ve secured from Google ensure robust processes are in place, so people can have confidence in reviews and make the best possible choices. They also help to create a level-playing field for fair dealing firms.This is a matter of fairness – for both business and consumers – and we encourage the entire sector to take note.
Any business that publishes reviews should consider the undertakings issued today – as well as the CMA’s draft guidance – and whether their own practices require changes. Failure to do so could result in a CMA investigation and, in future, a possible fine.
As part of its commitment Google has undertaken to introduce rigorous steps to detect and remove fake reviews; introducing consequences for individuals who are paid to write reviews, deleting their posts and removing access to reviews going forward. For businesses who seek to benefit from fake reviews prominent ‘warning’ alerts will be added to their Google profiles to flag to consumers that suspicious activity has been detected. Businesses will have the ability to collect new reviews removed and repeat offenders will have their last 6 months or more reviews deleted. Consumers will also be able to report where incentives are offered in return for positive reviews.
Through the soon-to-be-published Digital Markets, Competition and Consumers Act 2024 (DMCC), the CMA will have greater enforcement powers over breaches of consumer law. It will supersede the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) which has driven much of the move toward introducing up front and material information earlier in the conveyancing transaction.
Expected to come into force in April 2025 the DMCC will empower the CMA decide independently whether consumer law has been breached, without the need to take the case to court. Firms can be fined up to10% of their global turnover for non-compliance.
As part of the CMA’s work to tackle fake reviews, it has created draft guidance to help businesses ensure they are in line with consumer law. A consultation on this guidance concluded on 22 January 2025 with the final version set to be published later this year.