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An investigation into the practice of ‘fake online reviews’ and paid endorsements has been launched over concerns that some businesses may be misleading consumers.
In a report released today, the Competition and Markets Authority (CMA) estimated that more than half of UK adults (54%) use online reviews, and that 6% use blogs or vlogs (a video-based blog) before making a purchase.
The consumer watchdog – which launched an inquiry into online reviews sites earlier this year – said that most buyers who used reviews and endorsements found that the product or service they bought matched their expectations, but the CMA also heard about instances of potentially misleading practices.
These included fake reviews being posted onto review sites, negative reviews not being published and businesses paying for endorsements in blogs and other online articles without this being made clear to consumers.
Nisha Arora, CMA senior director of consumer, said: “Millions of people look at online reviews and endorsements before making decisions such as where to stay on holiday, or which plumber to use.
“We have found that consumers who use online reviews and endorsements find them valuable, but we have also heard about some practices that may be unlawful.”
In response, the CMA has opened an investigation into a number of companies where paid endorsements may not have been made clear to the readers. The CMA has also produced information for businesses explaining what they need to do to help them comply with the law.
Online review website TripAdvisor has welcomed the report, in a statement it said: “We are pleased that the CMA has recognised that online reviews are a hugely valuable, reliable and useful resource, but that bad practices in the wider industry need to be tackled to ensure that consumers are able to get the most accurate information possible.”
