Google to Put Warning Alerts on Companies with Fake Online Reviews

GOOGLE WILL NOW put warning alerts on business’s online profiles if they are found to fake online reviews to boost their star ratings.

Google will also put the warning notice on the profiles of people who have written the fake reviews.

The change was agreed with the competition watchdog, Competition and Markets Authority (CMA).

The CMA said: “Left unchecked, fake reviews damage people’s trust and leave businesses who do the right thing at a disadvantage.”

Google Reviews

Google is one of the most used review platforms in the world.

Online reviews can have a huge impact on consumer spending. The CMA estimated that as much as £23 billion of UK consumer spending is influenced by online reviews each year. Most consumers (89%) use online customer reviews when researching a product or service.

Sarah Cardell, Chief Executive of the CMA, said: “Left unchecked, fake reviews damage people’s trust and leave businesses who do the right thing at a disadvantage.

“The changes we’ve secured from Google ensure robust processes are in place, so people can have confidence in reviews and make the best possible choices. They also help to create a level-playing field for fair dealing firms.”

Warning to Businesses with Fake Reviews

The CMA’s agreement with Google is a warning to all other businesses that publish reviews. The CMA is urging them to consider whether they also need to make changes. Sarah Cardell added, “This is a matter of fairness – for both business and consumers – and we encourage the entire sector to take note.”

It means individuals who post fake or misleading reviews for UK businesses (positive or negative) from anywhere in the world will have their reviews deleted and will be banned from posting in future.

Google plans to expand its sanctions to non-UK businesses, including EU businesses, by the end of 2025.

Reviews Banned

Businesses found to be boosting their star ratings via fake reviews will not only have ‘warning’ alerts added to their Google profiles. They will also have all reviews deleted and be banned from receiving any new ones.

Google has agreed to put in place a reporting function that allows consumers to easily and quickly report concerning reviews. This includes the ability to report incentives, such as a payment or reward in exchange for a positive review. Google will report to the CMA for the next three years.

Trusted Trader Websites

Websites listing and recommending tradespeople were targeted by the CMA in November last year. The websites were warned against listing rogue traders who use false descriptions and reviews to give themselves an unfair advantage.

The false reviews boost their listing on search engines and trader websites and push honest traders’ listings further down the page meaning they get less attention.

Stronger Powers for CMA

Last year, parliament passed legislation to give the CMA stronger consumer powers. When this comes into force (expected in April 2025), the CMA will be able to decide independently when consumer law has been broken, without taking a case to court. The Digital Markets, Competition and Consumers Act 2024 will empower the CMA to fine firms that break the law up to 10% of their global turnover.

The CMA also worked with the Department for Business and Trade (DBT) to ensure that posting or commissioning a fake review is explicitly banned. The same applies to businesses that fail to take effective steps to prevent the publication of fake reviews and hidden advertising, and remove them.

CMA guidance to help businesses ensure they are in line with consumer law will be published later this year.

The CMA’s investigation into Amazon is ongoing.

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