UK: CMA tells Facebook and eBay to tackle fake reviews

The UK’s Competition and Markets Authority (CMA) stated on Friday, June 21, that it “has found troubling evidence that there is a thriving marketplace for fake and misleading online reviews.”

In a statement, the regulator announced that they had conducted “web sweeps” in the eight-month period between November 2018 and June 2019, and during that time over 100 eBay listings were discovered that offered to praise goods or services in return for cash. Facebook too was looked into during the same time period, and 26 groups were identified offering similar false feedback.

Citing research from Ofcom, the UK’s communications regulator, the CMA stated that over three-quarters of British online-shoppers consult reviews before spending money, which shows why it’s so crucial that such reviews can be trusted, as vast amounts of money change hands every day in online marketplaces.

The watchdog continued, “Fake and misleading reviews not only lead to people making poorly informed choices and buying the wrong products, but they are also illegal under consumer protection law.” The law in question is the Consumer Protection from Unfair Trading Regulations (2008), which sets out a number of banned practices, including prohibiting falsely representing oneself as a customer.