The British competition watchdog has initiated investigations into five companies, including AutoTrader and Just Eat, as part of a broader effort to combat fake reviews and deceptive online ratings. This announcement came on Friday amid ongoing scrutiny of consumer protection practices.
These probes follow earlier actions targeting major tech firms Amazon and Google, which resulted in reforms to better detect fraudulent reviews. Empowered by newly granted authority, the Competition and Markets Authority (CMA) can now independently determine violations of consumer law and impose penalties, including fines and mandatory improvements to business practices.
Specifically, AutoTrader, an online car marketplace, and Feefo, a review platform, are being examined for allegedly withholding one-star reviews on AutoTrader’s site, potentially distorting overall star ratings. Meanwhile, Just Eat, Europe’s largest food delivery service, faces investigation over suspicions that it may have artificially boosted ratings for certain restaurants and grocery partners.
Additionally, the CMA is probing Pasta Evangelists, a meal-kit provider, over claims that it offered discounts in exchange for five-star reviews. Funeral services company Dignity is also under scrutiny for reportedly encouraging employees to post positive reviews about its services.
The CMA has not yet concluded whether these companies have breached consumer laws but warned that the investigations could lead to findings of unlawful conduct and fines reaching up to 10% of the firms’ global revenues. CMA Chief Executive Sarah Cardell emphasized, “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.”
