Google has agreed to do more to identify and remove fake reviews, including punishing rogue individuals and British companies that manipulate their star ratings, the UK competition has said.
The Competition and Markets Authority (CMA) said the tech company will also issue “warning” alerts on the profiles of businesses that use fake reviews to boost their ratings.
The agreement comes after the CMA launched an investigation into Google in 2021 over concerns it may have breached consumer law by not taking adequate action to protect people from fraudulent reviews on its platforms. The IEA began a similar investigation into Amazon in 2021, which is ongoing.
Every year up to £23 billion of UK consumer spending can be influenced by online reviews, according to the CMA.
Research by consumer group Which? Show that up to 89% of consumers use online customer reviews when researching a product or service.
CMA CEO Sarah Cardell said Google is “leading the way” when it comes to tackling fake reviews.
She said: “Fake reviews left unchecked hurt people’s trust and leave businesses doing the right thing at a disadvantage.
“The changes we’ve made from Google ensure that robust processes are in place, so people can have confidence in reviews and make the best possible choices.
“This is an issue of fairness – for both businesses and consumers – and we encourage the entire sector to take note,” she added.
The watchdog said any business publishing should be vetted Google changes to see if they should change their own practices, adding that failure to do so could result in an investigation and a possible fine.
Google must report to the CMA over a three-year period to ensure it complies with the changes it has agreed.
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From April, the CMA will have stronger powers, allowing it to determine whether consumer law has been broken without taking a case to court. Companies violating the new system may face a fine representing up to 10% of their global turnover.
Watchdog has ramped up its scrutiny of Big Tech, and this month launched two investigations, one targeting Google’s search and advertising practices and another looking into Apple and Google’s mobile platforms.
But the appointment of Doug Gore, a former Amazon executive, as the new interim boss at the watchdog forced Business Secretary Justin Madders to reject that the government is “in the pocket of big tech.”
A Google spokesperson said: “Our longstanding investments in fighting fraudulent content help us block millions of fake reviews annually – often before they are published. Our work with regulators around the world, including the CMA, is part of our ongoing efforts to combat fake content and bad actors.”