The, the CMA, has opened another investigation into Big Tech — this one targeted at Amazon and Google over how well they handle (or, well, don’t) fake reviews. The Competition and Markets Authority has been interested in online reviews for several years since 2015. It also went after eBay and Facebook in 2019 to squeeze the trade in fake reviews it found thriving on their marketplaces. After continuing to pressure those platforms, the watchdog was given pledges to do more. In the case of Facebook, it took until April 2021 for it to take down 16,000 groups that had been trading fake reviews — and the CMA expressed disappointment that it had taken Facebook over a year to take meaningful action.
Now the CMA has, both of which control platforms hosting user reviews — saying it will be gathering evidence to determine whether they may have broken UK law by taking insufficient action to protect shoppers from fake reviews. Businesses that mislead consumers or don’t take action to intended to protect consumers from unfair trading. The CMA says its investigation into Amazon and Google follows an initial probe. It started in May 2020 and focused on assessing several platforms’ internal systems and processes for identifying and dealing with fake reviews. That work raised specific concerns about whether the two have been doing enough to:
- Detect fake and misleading reviews or suspicious patterns of behavior. For example, where the same users have reviewed the same or businesses at similar times, and there is no connection between those firms or products, the review suggests that the reviewer has received a payment or other incentive to write a positive review.
- Investigate and, where necessary, promptly remove fake and misleading reviews from their platforms.
- Impose adequate sanctions on reviewers or businesses to deter them and others from posting fake or misleading reviews on their platforms – including those who have published these studies many times.
The regulator also said it’s concerned that Amazon’s systems have been “failing adequately to prevent and deter some sellers from manipulating product listings” — for example, by co-opting positive reviews from other products. And, who hasn’t been browsing product reviews on Amazon, only to be drawn up short by a reviewer earnestly referring to product attributes that bear no relation to the sale item in question? While the user reviews that pop up on, for example,after a search for a local business can also display ‘unusual patterns‘ of 5-starring (or 1-starring) behavior…
Commenting on its investigation into concerns that Amazon and Google are not doing enough to combat the problem of fake reviews, the CMA’sin a statement: “We are investigating concerns that Amazon and fake reviews to protect customers and honest businesses. These tech platforms must take responsibility, and we stand ready to take action if we find that they are not doing enough.”
In a blog post earlier this month, Amazon — likely aware of the CMA’s attention on the issue — discussed the problem of bogus online reviews, claiming it “relentlessly innovates to allow only genuine product reviews in our store” and offering up some illustrative stats (such as that, in 2020 alone, it stopped more than 200M “suspected fake reviews” before they were seen by any customers, mainly via the use of “proactive detection”). However, the blog post was also heavily on the defensive — with the ecommerce giant seeking to spread the blame for the fake reviews problem — saying, for example, that there’s an “increasing trend of bad actors attempting to solicit fake reviews outside Amazon, particularly via services”.
It sought to frame fake reviews as an industry-wide problem, needing a coordinated, industry-wide solution — while reserving its heaviest fire for (unnamed) “social media companies” (cough Facebook cough) — and suggesting, for example, that they are the weak link in the chain: Amazon’s blog post also called for coordinated assistance from consumer protection regulators “around the world” to support its existing efforts to litigate against “bad actors”, aka “those who have purchased reviews and the service providers who provided them”.
The company also told us it has won “dozens” of injunctions against providers of fake reviews across Europe — adding that it won’t shy away from taking owners of the websites AMZ Tigers and TesterJob — seeking a prohibitory injunction and damages.) In light of the CMA’s investigation being opened now, Amazon’s blog post calling for regulatory assistance to support litigation against purveyors of fake reviews looks like a pre-emptive plea to the CMA to swivel its gaze back onto Facebook’s marketplace — and check back in on how the trade in counterfeit studies is looking over there.. (It noted, for example, a lawsuit it filed on June 9 with the London Commercial Court against the
We contacted the CMA to ask whether its investigation into Amazon and Google will dig into the role that reviews trading groups hosted elsewhere, such as onplatforms, may exacerbate the issue. The regulator declined to comment on this point and Google is a separate investigation. In terms of what could happen if, following the study, the CMA considers that the firms have broken UK consumer protection law, it has a range of enforcement powers — which could include securing formal commitments from them to change the way they deal with fake reviews or escalating to if needed.
However, it has not been determined whether Amazon and Google have broken the law. The CMA has been increasingly active in regulating. It dials attention on to competition law that look set to usher in an ex-ante regime for dealing with competition-denting platform power. The watchdog has several other open investigations into Big Tech, including Google’s planned . It also recently initiated a market study into and Google’s dominance of the mobile ecosystem.
Given the watchdog’s focus on powerful platforms and its long-standing interest in fake reviews — it’s interesting to speculate whether iOS maker Apple may not face some UK scrutiny on this issue. Concerns have also been raised over counterfeit ratings and reviews on its App Store. Earlier this year, for example, iOS app developer Kosta Eleftheriou filed suit against Apple — alleging it enticed developers to build is a safe and trustworthy place but that it doesn’t protect legitimate developers against scammers profiting from their hard work. The CMA already has an open investigation into Apple’s . So it will be paying close attention to aspects of the store, saying back in March that it would investigate whether Apple imposes unfair or anti-competitive terms on developers, ultimately resulting in users having less choice or paying higher prices for apps and add-ons. For now, though, the watchdog’s attention on the fake reviews has been publicly focused elsewhere.