Fake reviews and hidden fees cost consumers an average of £2.2 billion every year, according to recent Government findings – now its cracking down
In an announcement this week, the Government set out its plans to crack down on businesses that use fake reviews and fees tactics, with a particular focus on unscrupulous online marketplaces.
By using fake reviews and hidden checkout fees, retailers have been duping consumers into paying more for products, or worse, misinforming them on what they are buying.
Cracking down on deceptive sales tactics is a win-win for compliant businesses, who will undoubtedly benefit from a more even playing field in the market.
The Government has published new legislation that will come into affect from April 6, this includes:
- Businesses will be required to have adequate detection and removal procedures in place to prevent fake reviews being published.
- It will be law for businesses to include mandatory additional fees in the total price that is advertised for a particular product.
- Non-compliant businesses could receive fines from the Competition and Markets Authority (CMA) of up to £300,000 or 10% of their business’ global turnover.
For example, if a product costs £10 but comes with an additional purchase fee of £2, then the price initially advertised for the product should be £12, not £10.
It is worth noting however that optional extra fees that consumers can easily opt out of do not have to be advertised in the overall price for a product.
This ban expands upon pre-existing unfair commercial practices laws and comes as part of the Digital Markets, Competition and Consumer Act 2024.
With 90% of consumers using online reviews to choose what to buy, and £217 billion having been spent in online retail markets in 2023, transparent sales practices are essential.
To read the Government’s press release, click here.
Image credit: © Наталья Косаревич/Stock.adobe.com
