New rules to make fake reviews illegal
The government has announced enhanced powers for the Competition and Markets Authority (CMA), including plans to "stamp out" fake reviews by making it illegal to pay someone to write or host a fake review.
The government is consulting on a new law against commissioning someone to write or submit a fake review, hosting consumer reviews without taking reasonable steps to check they are genuine, and offering or advertising to submit, commission or facilitate fake reviews.
These new measures will come into effect following Parliamentary approval. ‘Subscription traps', in which businesses make it difficult to exit a contract, will also be stopped.
Consumer minister Paul Scully said: "We're making sure consumer protections keep pace with a modern, digitised economy. No longer will you visit a five-star-reviewed restaurant only to find a burnt lasagne or get caught in a subscription in which there's no end in sight. Consumers deserve better and the majority of businesses out there doing the right thing deserve protection from rogue traders undermining them."
The new measures will apply in England, Scotland and Wales. Consumer protection is devolved in Northern Ireland.
On mergers, to reduce bureaucracy and keep the burden on smaller businesses to a minimum, the government will exclude mergers between small businesses – where each party's UK turnover is less than £10m – from the CMA's merger control. The government is also improving the CMA's ability to review ‘killer acquisitions', where big businesses snap up prospective rivals before they can launch new services or products.
UKHospitality chief executive Kate Nicholls said: "We welcome these moves, which will help create a more level playing field for both businesses and consumers. In particular, we recognise that enhanced powers for the CMA will help stamp out the practice of fake reviews, which do irreparable damage to businesses. We therefore believe it is imperative that online review platforms be required to act and remove malicious and false reviews where appropriate.
"As ever, the devil will be in the detail and so we will be actively engaging in the consultation process in order that consumers are safeguarded without placing any further unnecessary burdens on businesses. We need also be satisfied that the new CMA powers will not unfairly punish businesses and, as 70% of hospitality businesses are SMEs, that a clear right of appeal is put in place that is accessible to operators big and small.
"Fairness for both businesses and consumers, particularly when it comes to offering refunds, will be crucial, and any new measures must also be made in the context of a sector facing an onslaught of challenges after a difficult two years. Soaring costs, chronic staff shortages and plunging consumer confidence continue to affect the sector, which needs ongoing support if it is to play its full role in the UK's recovery."
Photo: nito/Shutterstock
