web and mobile fraud
From the critical to the hypocritical - why fake reviews have become big business
Online reviews used to be the consumer comfort blanket when purchasing merchandise or services over the Internet – but not any more after a damning indictment of fake critiques by the Competition and Market Authority (CMA).
Shoppers using the Internet to research hotels, books, electronics and other purchases are being misled by millions of "fake" reviews orchestrated by companies to trick potential customers, the consumer watchdog has warned as it begins an inquiry.
More than half of the adults in Britain - around 25 million people - use online review websites such as Amazon, Tripadvisor, Expedia and Checkatrade to find the best deals. But their impressions are "distorted" by the growth of a "clandestine" market for fake reviews, the report, issued in June, discloses.
It found some companies were breaking the law by writing flattering posts about themselves to boost their rankings.
Others were offering money, free product samples or other "rewards" to people who write positive reviews or give five-star ratings.
In some cases, rival firms were posting disparaging remarks about each other to cloud the judgement of potential customers. And some review websites were hiding negative reviews because they had commercial arrangements with the companies facing criticism.
Although some websites told the regulator just two per cent of their reviews were spurious, other sources claimed the proportion was "much higher", the watchdog said.
"Given the clandestine nature of the fake reviews, it would be almost impossible to arrive at a credible figure," its report said.
An investigation will now commence and firms found to be acting illegally will be fined and their bosses may face prison.
Consumer groups welcomed the move. Which? said the inquiry was "critical" because research showed that around £23 billion of purchases a year were influenced by online reviews.
Guy Anker, a director of consumer advice experts MoneySavingExpert.com, said: "It is utterly appalling that companies are engaging in practices where they are duping potential customers who just want an honest appraisal of their services."
"Review websites are a vital part of people's research, whether that's booking a hotel or buying a product, and so visitors need to be able to trust them."
One of the best-known specialist sites is Tripadvisor, which hosts hundreds of millions of reviews written by and for holidaymakers. Booking agents such as Expedia and retailers such as Amazon also provide reviews alongside their primary function of selling a product or service. Checkatrade has 1.8 million reviews of electricians, plumbers, builders and other tradesmen, while Reevoo and Feefo collect and manage reviews on behalf of clients.
Many of these are free to use with revenues generated by advertising, paid-for links, payments or commissions from the companies listed or the provision of "reputation management" services to these firms.
Some sites have developed systems to detect and verify fake reviews, but others had not, the CMA said.
The different commercial arrangements that might influence the reviews and the way they were obtained was not always clear to users.
Customers were also trying to abuse the system by "blackmailing" companies by threatening to leave a negative review.
