Google Combats Fake Reviews (After Investigation)

Following an extensive investigation by the UK’s Competition and Markets Authority (CMA), Google has agreed to implement significant changes to its processes for detecting and addressing fake reviews.

To Improve Transparency and Trust

This landmark development is essentially aimed at ensuring fairness for consumers and businesses in an online marketplace that’s increasingly influenced by customer reviews. It’s hoped, therefore, that the new measures will improve transparency and trust in online reviews while providing consequences for businesses and individuals engaging in dishonest practices.

What’s The Problem With Fake Reviews?

Online reviews have become a powerful tool in shaping consumer decisions, with the CMA estimating that a staggering £23 billion of UK consumer spending is influenced annually by such reviews. Research indicates that 89 per cent of consumers actually rely on online reviews when deciding on products or services. However, today’s proliferation of fake reviews threatens to undermine trust in these platforms.

The issue with fake reviews is that they can create an uneven playing field by misleading consumers into choosing poorly-reviewed products or services and giving unethical businesses an unfair advantage. The problem is exacerbated by the increasing sophistication of fake review schemes, including paid reviews and bot-generated content.

Google and Amazon in the Frame

Concerns about the authenticity of reviews prompted the CMA to launch investigations into Google and Amazon back in June 2021. While Google has now reached an agreement with the CMA, the investigation into Amazon’s practices remains ongoing.

Why Was Google Under Investigation?

In the case of Google, the CMA’s investigation revealed shortcomings in its systems for detecting, removing, and preventing fake reviews. These gaps included insufficient action against suspicious patterns of behaviour and inadequate enforcement against businesses and reviewers engaged in fraudulent activity. The CMA’s scrutiny of Google centred on its compliance with consumer protection laws, particularly regarding the responsibilities of platforms hosting user-generated reviews.

Sarah Cardell, Chief Executive of the CMA, highlighted the broader implications of fake reviews, saying: “Left unchecked, fake reviews damage people’s trust and leave businesses who do the right thing at a disadvantage.”

The urgency of the issue has now led to the CMA having to secure legally binding commitments from Google, ensuring a more robust and transparent approach to tackling the problem.

Key Changes Google Has Agreed to Implement

In response to the CMA’s findings, Google has pledged to introduce several sweeping changes to its review system. These measures are aimed at detecting and deterring fake reviews, penalising offenders, and restoring consumer confidence in online reviews. The key undertakings agreed with the CMA by Google are:

– Enhanced detection of fake reviews. Google says it will employ more rigorous methods to identify and remove fake reviews, leveraging advanced technology and manual oversight to investigate suspicious activities. This should enable quicker and more accurate responses to fraudulent practices.

– Consequences for rogue reviewers. Individuals repeatedly posting fake or misleading reviews for UK businesses will face severe penalties. Their reviews will be deleted, and they will be banned from posting new reviews on Google, irrespective of their location.

– Sanctions for businesses engaging in fake reviews. Businesses found to be using fake reviews to inflate their star ratings will face visible warnings on their Google profiles. These alerts will inform consumers of detected suspicious activity. Additionally, businesses engaging in repeated misconduct will have all reviews removed for six months or more and will lose the ability to receive new reviews.

– Improved reporting mechanisms. Google will introduce a more robust reporting system, enabling consumers to easily report suspicious reviews or incentives offered for positive reviews. This will apply to both online and offline inducements.

– Regular oversight and reporting to the CMA. Google will report to the CMA over the next three years to ensure compliance with these commitments. This ongoing scrutiny will provide accountability and ensure that the changes are effectively implemented.

– Adaptation to evolving technology. After the three-year period, Google will have the flexibility to adapt its processes to address new challenges posed by advancements in technology, including artificial intelligence-driven fake reviews.

The Wider Implications for Businesses and Consumers

These changes could be a major step forward in the fight against fake reviews and signal Google’s commitment to trying to foster a fairer digital marketplace. As the CMA’s Sarah Cardell says, “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.”

Consumer advocacy groups, including Which?, have welcomed the CMA’s success in securing these commitments. Rocio Concha, Director of Policy and Advocacy at Which?, also emphasised the importance of monitoring Google’s compliance, saying: “The regulator must monitor the situation closely and be prepared to use new enforcement powers… to take strong action, including issuing heavy fines, if Google fails to make improvements.”

The Broader Regulatory Context

This development comes as the UK government is trying to strengthen consumer protection laws. For example, the Digital Markets, Competition and Consumers Act 2024, which actually comes into force in April 2025, will empower the CMA to independently determine breaches of consumer law without needing court approval. This legislation also introduces the potential for fines of up to 10 per cent of a company’s global turnover for non-compliance.

Also, the CMA has collaborated with the Department for Business and Trade to explicitly ban the posting or commissioning of fake reviews. Businesses that fail to address fake reviews and hidden advertising will face penalties under these new rules.

The CMA’s work extends beyond Google. As part of its broader effort to ensure fair online practices, the regulator has issued draft guidance to help businesses comply with consumer law. This guidance will be finalised later in 2025.

Industry Response and the Road Ahead

Google has expressed its commitment to combating fake reviews. A spokesperson for the company stated, “Our longstanding investments to combat fraudulent content help us block millions of fake reviews yearly – often before they ever get published. Our work with regulators around the world, including the CMA, is part of our ongoing efforts to fight fake content and bad actors.”

These changes highlight the influence of consumer feedback in shaping marketplace dynamics. By holding businesses and reviewers accountable, the CMA’s actions, therefore, aim to restore trust in online reviews and ensure that genuine businesses are not overshadowed by dishonest competitors.

As the CMA continues its investigation into Amazon and monitors compliance across the sector, this case sets a precedent for how regulatory bodies can work with tech giants to protect consumers and promote fair competition. The changes promised by Google are not just about tackling fake reviews but are also about reinforcing the integrity of the digital marketplace.

What Does This Mean For Your Business?

Google’s commitment to tackling fake reviews, under the watchful eye of the CMA, is quite a significant step towards restoring trust and fairness in the online marketplace. For businesses, these changes could clearly help in levelling the playing field. Ethical firms that rely on genuine customer feedback may finally see their efforts shielded from the unfair advantage enjoyed by competitors using dishonest practices. By penalising those who manipulate review systems, Google and the CMA are setting a clear standard that prioritises transparency and fairness.

As an initial reaction, it’ll be interesting to see whether it’s possible to ‘black hat’ the reviews for a competitor’s business, by deliberately leaving fake reviews in the hope the business will be penalised.

For consumers, this development may be equally impactful. With nearly 90 per cent of shoppers relying on reviews when making purchasing decisions, the assurance that review platforms are working harder to weed out fraudulent content is critical. The addition of more robust detection measures, clearer warnings, and improved reporting mechanisms will empower consumers to make better-informed choices. The visibility of warnings on business profiles and the suspension of review functions for repeat offenders will also serve as valuable signals, allowing customers to avoid potentially unscrupulous businesses.

However, while the measures introduced by Google are promising, their ultimate success hinges on consistent enforcement. As Which? has pointed out, these changes must be backed by strong oversight and, where necessary, punitive measures for non-compliance. The CMA’s ongoing role in monitoring Google’s implementation of these commitments will be pivotal in ensuring that promises translate into real-world impact.

The broader implications for the online marketplace are also worth noting. The CMA’s proactive stance and collaboration with the Department for Business and Trade send a clear message that unethical behaviour will no longer be tolerated. With stronger consumer laws on the horizon, businesses will need to adopt more rigorous review policies to avoid regulatory scrutiny and potential fines. These developments could encourage the entire sector to adopt higher standards, fostering an environment where consumers and honest businesses can thrive.

Looking ahead, the digital marketplace is likely to face new challenges as technology evolves. AI, for example, has already made the creation of fake reviews more sophisticated, posing fresh hurdles for platforms like Google. However, the commitments secured by the CMA ensure that Google’s approach will remain adaptable to emerging threats, keeping pace with technological advancements.

The CMA’s intervention has, therefore, set a precedent for holding powerful tech companies accountable and ensuring that consumer interests are protected. By cracking down on fake reviews, Google’s new measures offer a pathway to rebuilding trust in online platforms. While challenges remain, this initiative signals a shift towards a more transparent and equitable digital landscape, where authenticity and fairness take centre stage. For businesses and consumers alike, these changes could (hopefully) prove transformative, reinforcing the integrity of a marketplace increasingly driven by the voice of the customer.