Google and Amazon is under investigation following accusations of fake reviews. The investigation comes after concerns surrounding their “failure to protect shoppers”.
The CMA, Competition and Markets Authority, is launching a formal probe into the allegations. The investigation follows an initial probing last year into whether firms are protecting their customers. The results flagged concerning behaviour from Google and Amazon.
A large section of the CMAs initial findings that companies are not doing enough to “detect fake and misleading reviews”. Google and Amazon are having their reviews policy procedure analysed over whether they are doing enough to remove fake and misleading reviews quickly enough.
These reviews include those where the reviewer has a payment incentive to review the product. It also includes where the same users are seen to review a large amount of products or businesses without a connection being found.
Could Amazon and Google face legal charges over fake reviews?
If the investigative watchdog finds that Amazon and Google have broken laws, it will take enforcement action.
This legal action includes gaining formal commitments from the companies to change their policies. The watchdog requires them to change how they deal with fake reviews. However, if the companies do not comply then court action may be necessary.
Currently the CMA is not convinced that Amazon and Google are breaking any laws “at this stage”.
Online shopping is more popular than ever. The pandemic saw retailers shut for “non essential shopping”, leading millions to shop online. The CMA worry that the rise in online shopping is resulting in the misleading of shoppers by fake reviews. They then spend their money due to the untrue reviews.
CMA Chief Executive says “its not fair if businesses are faking their five star reviews”. This results in law abiding businesses missing out because of it.
An additional concern specifically surrounding Amazon is the manipulation of product listings. Amazon are facing accusations of “failing to adequately prevent and deter sellers from manipulating product listings”.
A spokesperson for Amazon refutes these claims. He says the company devotes “significant resources” to prevent fake or incentivised reviews. However, they say they will continue to assist the CMA with their investigations.
Google also disputes the claims against her. It confirms its policies state reviews are based on real experiences. If they find a user violating the policy, they will take action to disable the account. They, like Amazon, agree to work with the CMA in their investigations.
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