Lessons learned: Key takeaways from CMA’s recent online reviews probe

Nearly four years have passed since the Competition and Markets Authority (CMA) started its online reviews investigation into Amazon and Google. On 24 January the CMA announced that it had accepted binding undertakings from Google on its processes for tackling fake reviews. The update comes ahead of the implementation of the consumer protection provisions of the Digital Markets Competition and Consumers Act 2024 (the DMCC Act). 

Following CMA’s investigation on Google and DMCC Act deadline fast approaching, companies should take stock and prepare for the upcoming rules. 

Google's undertakings on fake reviews

CMA’s investigations into Google and Amazon, have been prompted by concerns about how these sites tackle fake and misleading reviews. Google’s undertakings offer valuable insight into what companies might be required to do under the upcoming rules and include: 

• carrying out detailed risk assessments annually the site,
• establishing thresholds for removal of reviews (and keep them under review),
• facilitating reporting of fake reviews by users and priority flaggers, and
• establishing and applying sanctions for businesses benefiting from fake reviews.

Preparing for the DMCC Act 

The DMCC Act introduces reinforced provisions specifically relating to fake reviews (which make it illegal to facilitate the publication of fake reviews) and confers on the CMA new, robust, direct enforcement powers. Under the new consumer protection regime, certain practices related to fake reviews have been added to the ‘blacklist’ of unfair commercial practices prohibiting their use regardless of their potential impact on consumers. These include: 

• submitting or commissioning fake reviews or reviews that conceal the fact they have been incentivised,
• publishing (including by intermediaries such as search engines, online marketplaces and social media) consumer reviews or consumer review information in a misleading way, and
• offering to submit or commission fake reviews or concealed incentivised reviews for traders.

In view of the upcoming regime and as part of its commitment to tackle unfair commercial practices, the CMA has also published draft guidance on unfair commercial practices (which stakeholders have been able to comment on as part of a consultation). The draft guidance outlines the general steps publishers are required to take, which closely mirror the commitments provided by Google.

Looking ahead

Once the consumer protection aspects DMCC Act provisions are in force, the compliance stakes for other platforms and digital players will be significantly higher given the CMA’s enhanced enforcement powers. 

Considering that online choice architecture, and fake reviews in particular, will likely remain an area of focus for the CMA, publishers and digital platforms in particular, may therefore want to pay close attention to the contents of these undertakings and consider whether to pre-emptively replicate (at least some of) their content. 

Read more in our Antitrust & Foreign investment team's in-depth briefing: Fake reviews: In Google we (can now) trust?