The US tech giant Google has agreed to make "significant change" on tackling fake reviews as part of a deal with the UK’s competition watchdog, according to an official statement on Friday.
Google has committed to put "warning" alerts on the profiles of UK businesses that use fake reviews to boost their star ratings, the Competition and Markets Authority (CMA) said in a statement.
In a deal, signed with the CMA, Google has committed to make significant changes to its processes for tackling fake reviews, meaning people can have more trust in the reviews they see.
*The undertakings signed by Google require the firm to sanction UK businesses that have boosted their star ratings with fake reviews – as well as sanctioning people who have written fake reviews for UK businesses," said in the statement.
The agreement comes after the CMA launched an investigation into Google over concerns it may have been breaching consumer law "by failing to take sufficient action to protect people from fake reviews."
The CMA estimated that as much as £23 billion ($28.5 billion) of UK consumer spending is potentially influenced by online reviews annually.
Citing research, the statement said that 89% of consumers use online customer reviews when researching a product or service.
Sarah Cardell, chief executive of the CMA, said that 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," she noted.
To address the CMA’s concerns, Google’s undertakings include an enhanced approach to tackling fake reviews, consequences for rogue reviewers around the world as well as consequences for UK businesses, easier reporting.
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