UK regulator opens probe into Amazon and Google's handling of fake reviews

UK’s competition regulator on June 25 said that it has opened a formal probe into Amazon and Google over the concerns that both firms have failed to do enough in order to tackle the fake reviews on their respective websites. The Competition and Markets Authority (CMA) on Friday said that, as part of the investigation, it will now collect information to further determine if both the e-commerce giant and the search engine giant have violated the consumer law by its inaction to safeguard the consumers from false reviews. 

The latest move comes after CMA opened an initial investigation in May 2020 and acknowledged the internal systems and processes of several platforms for not only locating but dealing with fake reviews. As part of the next step, according to the official statement, CMA will look into Amazon and Alphabet Inc’s insufficient actions to protect shoppers. The CMA has also flagged concerns with Amazon’s systems over its failure to “adequately to prevent and deter some sellers from manipulating product listings – for example, by co-opting positive reviews from other products.”

‘Millions of shoppers could be misled’

CMA’s Chief Executive Andrea Coscelli said in a statement, “Our worry is that millions of online shoppers could be misled by reading fake reviews and then spending their money based on those recommendations. Equally, it’s simply not fair if some businesses can fake 5-star reviews to give their products or services the most prominence, while law-abiding businesses lose out.”

“We are investigating concerns that Amazon and Google have not been doing enough to prevent or remove fake reviews to protect customers and honest businesses. It’s important that these tech platforms take responsibility and we stand ready to take action if we find that they are not doing enough,” Coscelli added.

According to the official release, if CMA finds the tech giants to have violated the consumer protection law, enforcement action would be taken. The action could include the British regulator “securing formal commitments from the firms to change the way they deal with fake reviews or escalating to court action if needed.” However, the body has not yet reached a conclusion if Amazon and Google have broken the law. 

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