The UK's competition watchdog is turning up the heat on misleading online feedback, launching investigations into five major businesses—including food delivery titan Just Eat and vehicle marketplace Auto Trader.
The Competition and Markets Authority (CMA) is examining whether these brands, alongside funeral provider Dignity, review platform Feefo, and fresh pasta delivery service Pasta Evangelists, have violated consumer protection laws. The sweeping probe will focus on how customer reviews are gathered, moderated, and displayed to the public.
With online feedback driving billions of pounds in annual consumer spending, regulators are increasingly concerned about the impact of fabricated ratings.
"Fake reviews strike at the heart of consumer trust," stated Sarah Cardell, the CMA's chief executive. "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."
According to the CMA, the investigations are focusing on specific suspected practices at each company:
- Auto Trader and Feefo: Scrutinized for potentially suppressing negative feedback, thereby denying shoppers an accurate picture of the customer experience.
- Just Eat: Probed over a rating system that may artificially inflate the scores of specific restaurants and grocery partners.
- Dignity: Accused of instructing its own employees to write glowing reviews for its cremation services, presenting a heavily skewed picture of client satisfaction.
- Pasta Evangelists: Investigated for allegedly incentivizing five-star ratings on food delivery apps by offering undisclosed discounts on future purchases.
All five companies have publicly confirmed their cooperation with the investigation. Just Eat pledged to ensure its system remains "clear, transparent and easy to use," while Feefo defended its moderation practices as "fair, robust, transparent and structured." Auto Trader and Pasta Evangelists vowed full compliance with consumer laws, and Dignity stated it is treating the allegations "extremely seriously."
The CMA emphasized that the launch of these investigations does not mean the companies are inherently guilty of breaking the law. However, thanks to new enforcement powers granted last April, the watchdog can now levy direct fines on rule-breaking companies without dragging them through lengthy court proceedings.
Consumer rights advocates are urging the regulator to make full use of its new teeth.
"Investigations are a welcome first step, but enforcement will be key: the regulator must be prepared to get tough, use its powers and issue serious fines if these companies aren't playing by the rules," said Sue Davies, head of consumer rights policy at Which?.
The scope of the fake review problem is vast. Recent estimates from the research firm TruthEngine suggest that roughly half of all online reviews could be fabricated. The issue also plagues small businesses, some of which were targeted by extortionists last year who threatened to flood their listings with fake one-star reviews unless a ransom was paid.
Even tech behemoths are feeling the pressure. Earlier this year, Google and Amazon pledged to overhaul their review processes following similar scrutiny from the CMA.
To help shoppers navigate the murky waters of online feedback, the CMA advises consumers to look beyond the star rating and read the actual text. Shoppers should be wary of suspiciously polished, AI-generated reviews and place more trust in three- and four-star ratings, which often reflect minor, realistic grievances. Finally, the watchdog recommends cross-referencing reviews across multiple platforms before making a purchase.