Amazon has made a commitment to the Competition and Markets Authority (CMA) to enhance its existing systems for tackling fake reviews, which are now explicitly banned under the Digital Markets, Competition and Consumers Act (DMCCA).
The undertakings also tackle CMA concerns about ‘catalogue abuse’. This is where sellers hijack the reviews of well-performing products and add them to an entirely separate and different product in order to falsely boost its star rating and mislead consumers. In practice, this could mean a consumer thinks they have found a pair of 5-star headphones, but on closer inspection, the majority of reviews are about a mobile phone charger.
Amazon has also agreed to sanction businesses that boost their star ratings via bogus reviews or catalogue abuse, including bans from selling on the website. Sanctions will also be applied to users who post fake reviews, who could be banned from posting reviews altogether.
The update comes as part of ongoing action from the CMA to protect consumers online. Earlier this year, the watchdog secured undertakings from Google that saw the company make significant changes to its processes for tackling fake reviews, including sanctions for repeat offenders.
Amazon’s undertakings come after the CMA launched an investigation into the online giant over concerns that the company was breaching consumer law by failing to take adequate action to protect people from fake reviews – including not doing enough to detect and remove fake reviews, act on suspicious patterns of behaviour, or properly sanction reviewers and businesses taking part in fake review activity.
The CMA noted that online reviews can have a significant impact on people’s spending. Around 90% of consumers use reviews when making purchasing decisions, and the regulator estimates that as much as £23bn of UK consumer spending is potentially influenced by online reviews annually.
The CMA stated that it welcomed the “constructive and collaborative approach” from Amazon in developing the undertakings, and its commitment to implement them swiftly to protect its customers.
Sarah Cardell, Chief Executive of the CMA, said: “So many people use Amazon, from buying a new bike lock to finding the best coffee machine – and what’s clear is that star ratings and reviews have a huge impact on their choices. That’s why these new commitments matter and help set the standard. They mean people can make decisions with greater confidence – knowing that those who seek to pull the wool over their eyes will be swiftly dealt with.
“The undertakings from Amazon and Google, alongside our recently published advice to review platforms, paint a clear picture of what the law requires from businesses. Following this, we’re now launching the next phase of our work. This will scrutinise whether review platforms, businesses who list products on them, and reviewers themselves, are complying with the strengthened laws around fake reviews – and whether further action will be needed to see real change for shoppers.”
NAM Implications:
- A pledge could take valuable time.
- Consumer centricity demands fast solus action.
- And knowing Amazon, it will happen.
- A pointer for all…
