CMA Launches Fake Reviews Crackdown Targeting Major UK Firms
The Competition and Markets Authority (CMA) has initiated investigations into five prominent UK companies, including food delivery giant Just Eat and used car marketplace Autotrader, over potential manipulation of customer reviews and star ratings. This marks the first major enforcement action under new consumer protection rules introduced in April that specifically target deceptive review practices.
Specific Allegations Against Each Company
According to the competition watchdog, Just Eat's rating system may have artificially inflated star ratings for certain restaurants and grocery providers on its platform. The CMA expressed concern that this could mislead consumers about the true quality of these establishments.
Autotrader faces scrutiny over whether its review system properly accounted for negative feedback, with allegations that some one-star reviews may not have been included in overall rating calculations. The investigation also extends to customer feedback platform Feefo, which moderated the Autotrader reviews now under examination.
Funeral services provider Dignity is being investigated for potentially encouraging staff members to write positive reviews about the company's crematorium services. Meanwhile, restaurant chain Pasta Evangelists faces allegations of offering customers discounts on future orders in exchange for five-star reviews on delivery applications.
New Rules and Enforcement Timeline
The CMA's new guidance, implemented in April, explicitly prohibits companies from posting fake reviews, suppressing negative feedback, and publishing paid-for reviews that aren't clearly identified as advertisements. Following the rules' introduction, the watchdog granted businesses a three-month grace period to adapt their practices, during which it provided guidance and refrained from launching investigations.
That adjustment period has now concluded, and the CMA has shifted to enforcement mode. After examining more than 100 company websites, the authority determined that over half could be violating the new regulations due to inadequate policies addressing fake reviews.
Broader Industry Impact and Consumer Concerns
CMA Chief Executive Sarah Cardell emphasized the significance of this crackdown, stating: "Fake reviews strike at the heart of consumer trust – with many of us worrying about misleading content when looking at reviews online. With household budgets under pressure, people need to know they're getting genuine information – not reviews or star-ratings that have been manipulated to push them towards the wrong choice."
The watchdog has identified 54 companies with potentially non-compliant practices and is contacting each to remind them of their obligations under the new rules. The CMA stated: "The results have raised concerns over businesses' understanding of their obligations around the prevention of fake and misleading reviews – and the CMA is stepping in to address this."
Company Responses and Ongoing Investigations
A Just Eat spokesperson responded to the investigation, saying: "We are working closely with the Competition and Markets Authority to ensure the reviews and ratings on our platform are clear, transparent and easy to use for all our customers and partners. Our goal has always been to create a platform that works for everyone – from the people ordering their favourite meals to our restaurants and retail partners serving their communities. We will continue to engage constructively with the CMA throughout their investigation."
Autotrader, Dignity, Pasta Evangelists, and Feefo have all been contacted for comment regarding the investigations. The CMA has indicated it will use its enhanced enforcement powers to address what it considers the most harmful practices, with Cardell noting: "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."
