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The UK’s Competition and Markets Authority (CMA) has launched an investigation into five companies, including food delivery service Just Eat and car marketplace Autotrader, over concerns related to fake and misleading online reviews. The scrutiny extends to review platform Feefo, funeral services provider Dignity, and meal delivery company Pasta Evangelists, with the regulator examining whether these businesses have breached consumer protection laws.
This inquiry centers on the processes these firms use to gather, moderate, and present customer feedback. Given that online reviews significantly impact consumer spending, concerns have been raised about the accuracy and authenticity of the information provided. Sarah Cardell, the CMA’s chief executive, emphasized the importance of genuine reviews by saying, “Fake reviews strike at the heart of consumer trust.” She also highlighted the challenges faced by consumers, stating, “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.”
Since April last year, the CMA has had enhanced powers to impose fines on companies that violate consumer regulations without needing to pursue court action. While the investigation is ongoing, the authority has not yet concluded that any laws have been broken. Specific concerns include whether Feefo and Autotrader failed to provide a balanced representation of customer opinions by excluding negative reviews, if Just Eat artificially increased certain restaurants’ and grocers’ star ratings, whether Dignity solicited positive feedback from its staff to create misleading impressions of its cremation services, and if Pasta Evangelists offered customers discounts in exchange for five-star reviews on delivery apps.
Responses from the companies under investigation have varied. Autotrader stated its commitment to operating responsibly and pledged full cooperation with the CMA. Just Eat mentioned its efforts to ensure that customer reviews remain transparent and user-friendly. Meanwhile, the BBC reached out to Feefo, Dignity, and Pasta Evangelists for comments but did not report back on their responses. Sue Davies, head of consumer rights policy at Which?, praised the investigation but stressed the need for strong enforcement: “The regulator must be prepared to get tough, use its powers and issue serious fines if these companies aren’t playing by the rules.
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