March 27 (Reuters) - The British competition regulator on Friday said it is investigating five companies including, Autotrader and Just Eat, as part of its crackdown on "fake reviews and misleading
UK regulator investigates five companies for fake reviews and misleading ratings
Crackdown on Fake Reviews and Misleading Online Ratings
March 27 (Reuters) - The British competition regulator has launched investigations into five companies including AutoTrader and Just Eat as part of its crackdown on fake reviews and misleading online ratings, it said on Friday.
The investigations follow the watchdog's interventions into tech giants Amazon and Google over possible breaches of consumer protection law, which led to changes for improving systems for identifying fake reviews.
Under newly granted powers, the Competition and Markets Authority (CMA) can independently decide whether consumer law has been infringed and act against breaches, including levying fines and ordering businesses to improve their practices.
Details of the Latest Probes
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AutoTrader and Feefo Allegations
Suppression of Negative Reviews
Online car marketplace AutoTrader and reviews platform Feefo are being scrutinised over allegations that one‑star reviews were not published on AutoTrader’s website, potentially skewing overall star ratings. -
Just Eat Investigation
Inflated Ratings Concerns
Europe’s largest food delivery company, Just Eat, is under investigation over concerns it may have inflated ratings for some restaurants and grocery partners. -
Pasta Evangelists and Dignity Accusations
Incentivised and Staff-Written Reviews
CMA said meal‑kit firm Pasta Evangelists may have offered discounts in exchange for five‑star reviews while funeral services provider Dignity is accused of asking staff to write positive reviews about its own services. -
Potential Outcomes of the Investigations
Possible Unlawful Conduct and Fines
CMA said it has not yet reached conclusions on whether consumer law was broken, but said the investigations could result in findings of unlawful conduct and fines of up to 10% of the companies' global turnover. -
CMA's Statement on Enforcement
New Powers Deployed
"We’ve given businesses the time to get things right. Now we’re deploying our new powers to tackle some of the most harmful practices head on", said CMA's chief executive Sarah Cardell.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sonia Cheema and Mrigank Dhaniwala)
