Gov to award CMA new power to ban fake reviews

The government is consulting a new law that will make it illegal to pay someone to write or host a fake review.

It revealed this is so people are not “cheated” by bogus ratings.

Fake reviews will be tackled by consulting on a new law against:

• Commissioning someone to write or submit a fake review
• Hosting consumer reviews without taking reasonable steps to check they are genuine
• Offering or advertising to submit, commission or facilitate fake reviews

The government said it is giving the Competition and Markets Authority (CMA) “enhanced powers” to combat rip-offs and “bad business” practices. 

The CMA will be able to directly enforce consumer law, including new powers to fine firms up to 10% of their global turnover for mistreating consumers. This replaces going through a court process which the government said can take years.   

Additionally, clearer rules will be implemented for businesses to make it easier for consumers to opt out of subscriptions so they are not trapped paying for things they no longer want.  

Under new rules, the government said businesses must:

• Provide clearer information to consumers before they enter a subscription contract
• Issue a reminder to consumers that a free trial or low-cost introductory offer is coming to an end, and a reminder before a contract auto-renews onto a new term
• Ensure consumers can exit a contract in a straightforward, cost-effective and timely way

Paul Scully, consumer minister, said:  “We’re making sure consumer protections keep pace with a modern, digitised economy. No longer will you visit a five star-reviewed restaurant only to find a burnt lasagne or get caught in a subscription in which there’s no end in sight. 

“Consumers deserve better and the majority of businesses out there doing the right thing deserve protection from rogue traders undermining them.

He added: “The average UK household spends around £900 each year influenced by online reviews and spends £60 on unwanted subscriptions. 

“The reforms underline the government’s commitment to seizing the opportunities provided by leaving the EU and adapting to the lessons of the pandemic, which has accelerated the trend towards online shopping and cast a spotlight on bad business practices like fake reviews.”

Kate Nicholls, UKHospitality chief executive, said: “We welcome these moves, which will help create a more level playing field for both businesses and consumers. In particular, we recognise that enhanced powers for the Competition and Markets Authority (CMA) will help stamp out the practice of fake reviews, which do irreparable damage to businesses.”

“As ever, the devil will be in the detail and so we will be actively engaging in the consultation process in order that consumers are safeguarded without placing any further unnecessary burdens on businesses. 

She added: “We need also be satisfied that the new CMA powers will not unfairly punish businesses and, as 70% of hospitality businesses are SMEs, that a clear right of appeal is put in place that is accessible to operators big and small.”