Google has committed to penalising UK businesses and individuals involved in generating fake reviews, to tackle deceptions in online ratings.
This decision is part of an agreement with Britain’s Competition and Markets Authority (CMA), which has been investigating the impact of fake reviews on consumer trust and spending.
As part of the measures, Google will implement warning alerts on the profiles of UK businesses found guilty of manipulating their ratings through fake reviews. According to the CMA, these aim to ensure transparency and security for both consumers and businesses.
The CMA’s investigation, launched in 2021, had targeted both Google and Amazon over issues that the tech giants were not doing enough to address fraudulent reviews on their platforms. While Google has now taken corrective steps, the investigation into Amazon is still on.
Online reviews have a huge influence on consumer behaviour, with an estimated £23 billion of annual UK spending potentially affected by such reviews. The CMA also revealed that 89% of consumers rely on online reviews when researching products or services.
CMA Chief Executive Sarah Cardell stated, “The changes we’ve secured from Google ensure robust processes are in place, so people can have confidence in reviews and make the best possible choices. This is a matter of fairness – for both businesses and consumers – and we encourage the entire sector to take note.”
Google, on its part, acknowledged its collaboration with regulators worldwide as part of its goal to tackle fake content. A spokesperson noted that these initiatives reiterate the company’s focus on addressing “bad actors” and maintaining the integrity of its platforms.
From April, the CMA will gain new powers, allowing it to independently determine breaches of consumer law without resorting to court proceedings.
Regulators are currently investigating tech companies, including recent probes into Google’s search services and the monopoly of Apple and Google in mobile industries.
However, the government’s decision to appoint a former Amazon executive as chair of the CMA brings questions among competition experts, regarding the possible implications for the regulator’s stand on big tech.
