The CMA is investigating Autotrader and Feefo over whether one-star reviews were hidden on Autotrader's platform and did not count towards star ratings, which could mislead consumers about the quality of vehicles listed. The CMA is investigating Dignity over whether it asked staff to write positive reviews about the company's crematoria services, potentially creating a false impression of customer satisfaction. The CMA is investigating Just Eat over whether its ratings system inflated restaurant and grocer star ratings, possibly distorting consumer choices on the food delivery platform.
The CMA is investigating Pasta Evangelists over allegations it offered customers discounts for leaving five-star reviews on delivery apps without disclosure, which could constitute undisclosed incentivized reviews. Since April 2024, certain practices around online reviews, such as fake posts and paid-for reviews not clearly marked, have been banned under UK law, strengthening consumer protections. The CMA has secured commitments from Google and Amazon to strengthen their systems to identify and remove fake reviews, according to multiple reports, as part of broader efforts to combat review manipulation.
Feefo is fully supportive of the CMA's objective and confident in its compliance framework, emphasizing transparency and genuine consumer intent.
Trustpilot is hosting reviews of illegal casinos, including brands like MyStake, Velobet, and Goldenbet, which do not have a license from the UK Gambling Commission, multiple reports indicate, raising concerns about platform policies. Offering gambling services without a license from the regulator is a criminal offense in the UK, highlighting the legal risks associated with such reviews. Trustpilot took down affiliate review pages after being contacted by the Guardian, but appeared to claim that reviews for illegal casinos did not breach its policies, according to multiple reports, suggesting potential policy gaps.
The Australian Competition and Consumer Commission is taking Woolworths to court, alleging it misled shoppers with fake discounts on everyday groceries, according to the ACCC, showing international regulatory action. The ACCC alleges Woolworths temporarily increased prices of at least 266 products before placing them on 'Prices Dropped' promotions at higher or same prices, a practice known as 'was pricing'. Online reviews influence billions of pounds of UK spending every year, according to the CMA, underscoring their economic impact on consumer decisions.
An online reviews expert welcomed the news and urged consumers to fundamentally change how they assess reviews.
Research from Which? found that 89% of people use reviews when researching a product or service, indicating widespread reliance on online feedback. The CMA said while it is investigating the five businesses, it has not reached any conclusions about whether consumer law has been broken, maintaining a cautious stance.
An online reviews expert's company has found over half of reviews are fake, according to the expert's company, suggesting a significant prevalence of fraudulent feedback. The specific evidence the CMA has gathered against each of the five companies under investigation remains undisclosed, as does the timeline for when conclusions or actions might be announced. It is unclear how many consumers have been affected by the alleged fake reviews and misleading discounts across all cases, limiting understanding of the scale of harm.
Whether other major review platforms besides Trustpilot are also hosting reviews for illegal services is another unknown, pointing to broader industry concerns. Potential penalties or fines the companies could face if found guilty of violating consumer laws have not been specified, leaving enforcement outcomes uncertain.