Amazon has given undertakings to the Competition and Markets Authority (CMA) committing to enhancing its existing systems for tackling fake reviews.
Fake reviews are now explicitly banned under the Digital Markets, Competition and Consumers Act (DMCCA) and the news comes as the CMA looks to protect consumers online.
The undertakings also tackle CMA concerns about ‘catalogue abuse’, whereby sellers hijack the reviews of well-performing products and add them to an entirely separate and different product, in order to falsely boost its star rating.
Jeff Bezos’s giant has also agreed to sanction businesses that boost their star ratings via bogus reviews or catalogue abuse, including bans from selling on the website.
The undertakings come after the authority launched an investigation into the global giant over concerns that the company was breaching consumer law by failing to take adequate action to protect people from fake reviews.
Around 90% of consumers use reviews when making purchasing decisions and the CMA has estimated that as much as £23 billion of UK consumer spending is potentially influenced by online reviews annually.
“So many people use Amazon, from buying a new bike lock to finding the best coffee machine – and what’s clear is that star ratings and reviews have a huge impact on their choices,” said Sarah Cardell, chief executive of the CMA.
“That’s why these new commitments matter and help set the standard. They mean people can make decisions with greater confidence – knowing that those who seek to pull the wool over their eyes will be swiftly dealt with.
“The undertakings from Amazon and Google, alongside our recently published advice to review platforms, paint a clear picture of what the law requires from businesses. Following this, we’re now launching the next phase of our work.
“This will scrutinise whether review platforms, businesses who list products on them, and reviewers themselves, are complying with the strengthened laws around fake reviews – and whether further action will be needed to see real change for shoppers.”
To address concerns, Amazon will now implement rigorous processes to tackle fake reviews and businesses and reviewers face being sanctioned for the use of them.
It will also develop easier reporting functions to raise awareness.