Amazon gives undertakings to CMA to curb fake reviews
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Amazon, one of the largest online retailers in the world, has given
undertakings to the Competition and Markets Authority (CMA)
committing 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...Request free trial
Amazon, one of the largest online retailers in the world, has given undertakings to the Competition and Markets Authority (CMA) committing 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. These undertakings build on Amazon's existing processes to ensure rigorous and robust systems are in place – meaning consumers can have greater trust and confidence in both star ratings and online reviews. The update comes as part of continued action from the CMA to protect consumers online. Earlier this year, it 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 The undertakings come after the CMA launched an investigation into Amazonover 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. Online reviews can have a huge impact on people's spending. Around 90% of consumers use reviews when making purchasing decisions, and the CMA has estimated that as much as £23 billion of UK consumer spending is potentially influenced by online reviews annually. The CMA welcomes the constructive and collaborative approach from Amazon in developing these 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. To address the CMA's concerns, Amazon has committed to:
What's next The CMA is currently conducting an initial sweep of review platforms following the publication of its Fake Reviews Guidance in April. This seeks to identify review platforms that may need to do more to ensure they are complying with consumer law (as is outlined in the guidance). This action will form part of a new phase of the CMA's work looking into the conduct of players across the sector, including businesses whose products and services are listed on review sites. It will determine whether further CMA action is needed under the new consumer regime. Under the DMCCA, the CMA can now decide independently whether consumer law has been infringed, rather than going through the courts. It can also tackle consumer law breaches directly, including issuing fines, ordering businesses to improve their practices to make sure they are in line with the law, and making them pay redress to affected consumers. More information on this case can be found on the Online Reviews case page. Notes to editors
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