Online reviews play a major role in how customers choose products and services, which is why the Competition and Markets Authority (CMA) is increasing its focus on fake and misleading review practices.

The CMA has recently launched investigations into five businesses as part of a wider crackdown on potentially deceptive online review activity.

Why the CMA Is Investigating

The investigations are looking into how reviews are:

  • collected,
  • moderated,
  • displayed, and
  • reflected within star ratings shown to customers.

The move follows the introduction of the Digital Markets, Competition and Consumers Act 2024, which made several review-related practices illegal, including:

  • posting fake reviews,
  • paying for reviews without clearly disclosing incentives,
  • suppressing negative reviews, and
  • presenting misleading star ratings.

The legislation aims to improve transparency and maintain consumer confidence in online purchasing decisions.

Businesses Currently Under Investigation

The CMA has confirmed investigations involving:

  • Autotrader and Feefo – regarding whether 1-star reviews were excluded from publication and overall ratings
  • Dignity – concerning whether employees were encouraged to leave positive reviews
  • Just Eat – over concerns that some restaurant and grocery ratings may have been artificially inflated
  • Pasta Evangelists – relating to customers allegedly receiving incentives for 5-star reviews without clear disclosure

The CMA has stated that investigations do not automatically mean the businesses involved have broken the law.

However, where breaches are identified, the CMA has powers to:

  • force businesses to change their practices, and
  • issue fines of up to 10% of global turnover.

Why This Matters for Businesses

For many businesses, online reviews have become one of the most influential parts of their marketing and sales process.

However, businesses must now be particularly careful about how reviews are requested, managed, and displayed.

Practices that may once have been seen as “harmless marketing” could now create significant legal and reputational risks.

Areas businesses should review include:

  • incentivised review campaigns,
  • automated review requests,
  • moderation policies,
  • star rating calculations, and
  • how negative reviews are handled.

CMA Tips for Spotting Potentially Fake Reviews

The CMA has also shared guidance to help consumers identify suspicious reviews online.

1. Read Beyond the Star Rating

Reviews that are vague, generic, or unrelated to the product or service may be a warning sign.

2. Watch for AI-Generated Reviews

Artificial intelligence can now produce highly polished and convincing reviews. If a review feels overly scripted or lacks genuine detail, it may not be authentic.

3. Don’t Focus Only on 5-Star Reviews

Three and four-star reviews are often more balanced and realistic, providing a clearer picture of the customer experience.

4. Compare Across Multiple Platforms

Looking at reviews across different websites can help identify inconsistencies or unusual rating patterns.

Staying on the Right Side of the Rules

With regulation tightening, businesses should ensure their review practices are fully transparent and compliant.

At Harris Lacey and Swain, we work with businesses to help them understand evolving compliance requirements and reduce potential legal and reputational risks as regulations continue to change.