The UK’s competition watchdog opened a formal investigation into Amazon and Google on Friday, citing worries that companies haven’t done enough to combat fake reviews.
When consumers post reviews on the same range of products/businesses at the same time, even though there is no link between those products/businesses, or simply when the review “suggests” that the reviewer has been paid or motivated to write a favorable review, it is termed a “fake review.”
The UK’s Competition and Markets Authority (CMA) has opened a formal investigation into the online retailer and Pixel manufacturer for “breaching consumer law.” This isn’t the first time the CMA has launched an inquiry like this. The first, which looked at internet businesses in general and what they do to safeguard their clients from fake reviews, was held last year.
According to the watchdog’s chief executive Andrea Coscelli, “our concern is that millions of online buyers might be deceived by reading false reviews and then investing their money based on those suggestions.”
Equally, it’s just not fair if certain firms can create 5-star ratings to boost their products or services while law-abiding businesses suffer. Google and Amazon stated they will cooperate with UK officials in the inquiry.
The investigation will also look at whether the companies punish reviewers or firms for submitting false ratings.