Payments for online reviews break the law, says watchdog

SHOPPING websites that fail to disclose payments or free gifts to writers of reviews could face official action.

Reviews where undisclosed freebies or payments have been given are unlawful, the Competition and Markets Authority told the online reviews industry at a conference yesterday.

The warning follows reports that Amazon is “rife” with sellers bribing customers for five-star reviews.

Jon Riley, project director at the CMA, said that unless reviews where incentives had been exchanged were clearly marked as “paid for”, they were unlawful and could end up distorting consumers’ views. He added: “It might be that we intervene in markets or go back and correct things.”

The CMA website says sellers which fail to disclose payments or gifts in return for positive reviews are in breach of the Unfair Trading Regulations 2008, which now form part of the Consumer Rights Act 2015.

Amazon sellers are reportedly offering free items such as sunglasses in return for positive reviews, while others are agreeing to discounts if customers agree to plant questions in reviews to make it appear like people are interested in products.

Consumer experts describe the practice as disgraceful. Amazon says less than one per cent of the reviews on its site are fake.

Dozens of celebrities are also being investigated by the CMA over social media posts which it suspects are “hidden adverts” for products. Online reviews are estimated to influence £23billion of spending per year.

This newspaper reported last month that consumer watchdog Which? was failing to stop fake reviews on its Trusted Traders website.