Watchdog Investigates Five Firms Over Fake Reviews

The UK’s competition and consumer watchdog has launched formal investigations into five businesses over how online customer ratings and comments are managed. The Competition and Markets Authority (CMA) said it is assessing whether protections against fake or misleading reviews have been adequate and whether UK consumer rules may have been breached.

The CMA announced the probes began on June 18, 2024, and named Autotrader, Just Eat, Dignity, Feefo, and Pasta Evangelists. The regulator stressed that opening an investigation does not, by itself, mean any law has been broken.

What the regulator is examining

In its outline of the cases, the CMA said allegations involving Autotrader and Feefo include the possibility that negative feedback was delayed, withheld, or removed. The authority is examining whether such handling, if it occurred, could amount to manipulation or insufficient safeguards against manipulation by others.

For Dignity, the CMA said it is looking into claims that staff may have been encouraged to post positive reviews linked to cremation services. In Just Eat’s case, the regulator is scrutinizing an alleged approach to ratings that may have increased star scores for some restaurant and grocery partners.

Incentives, design choices, and consumer law

Pasta Evangelists is being investigated over claims that customers were offered incentives connected to leaving five-star reviews. Across the five inquiries, the CMA’s stated focus is whether review systems, moderation, and any incentive structures could mislead consumers or distort competition.

The CMA framed the work as part of a broader effort to protect trust in digital marketplaces. It said online ratings can shape purchasing decisions, meaning unreliable reviews can affect both consumers and competing businesses that rely on fair comparisons.

What changed: new enforcement powers

A key development is the legal toolkit the CMA says it is now applying. The authority cited new powers under the Digital Markets, Competition and Consumers Act, which it said prohibits certain unfair and illegal practices tied to online reviews.

Under this framework, the CMA said it can decide whether consumer law has been breached without first taking the case through court proceedings. It also said it can impose financial penalties of up to 10% of a company’s global turnover, a threshold that can matter for firms with international revenue.

Broader context and what remains unknown

The regulator said the investigations follow earlier work involving Amazon and Google on similar issues. It also stated that the number of businesses under review in its wider program has reached 14.

Several elements remain unresolved, including what evidence the CMA will rely on, whether it will conclude that consumer law was breached, and what remedies—if any—could be required. The CMA did not provide a timeline for decisions in its announcement.