Amazon fake reviews, CMA UK, Digital Markets Competition and Consumers Act, catalogue abuse, online marketplac
According to a statement issued by the CMA, stronger reporting mechanisms will be imposed by Amazon, with penalties for infringing businesses and individual users and a stricter monitoring system for reviews.
“Amazon, one of the largest online retailers in the world, has given undertakings to the Competition and Markets Authority (CMA) committing to enhance its existing systems for tackling fake reviews, which are now explicitly banned under the Digital Markets, Competition and Consumers Act (DMCCA),” read an official statement.
These measures are meant to restore trust in the online shopping platforms, with reviews accounting for up to £23 billion in UK consumer spending every year, as estimated by the CMA. The probe against Amazon and Google was launched by the US watchdog in 2021.
Chief Executive of the CMA, Sarah Cardell, said many people use Amazon and the star ratings and reviews have a “huge impact on their choices”. She added, “That’s why these new commitments matter and help set the standard.”
The CMA has previously secured similar undertakings from Alphabet Inc.’s Google
in January. Together, the actions represent a significant tightening of regulations against review manipulation across major tech platforms.
As part of its agreement, Amazon has committed to detecting and removing fake reviews swiftly through robust systems. The e-commerce player has also pledged that it will identify offending sellers or reviewers and act against them.
Amazon also said that businesses involved in fake review schemes or catalogue abuse can be banned from selling on its platform. The users posting fake reviews will likely face a ban from reviewing altogether, with all their reviews deleted, the company promised.
Lastly, Amazon also said that it will implement accessible tools, which will allow both consumers and businesses to report fake reviews and suspicious product listings quickly and easily.
Amazon claimed that it blocked over 275 million fake reviews in 2023 alone. The CMA’s recent actions demand further accountability, particularly now that the watchdog can issue fines or order redress directly without going to court under the DMCCA.
The CMA has launched a new phase of its crackdown, performing a "sweep" of review platforms to ensure compliance with its Fake Reviews Guidance, which was released in April. This initiative covers not only platforms like Amazon and Google, but also the businesses and reviewers that use such sites.
The regulator made it clear that if platforms fail to meet the new consumer regime's rules, more enforcement may be necessary.
(Edited by : Sudarsanan Mani)