Autotrader and Feefo under investigation for handling of negative online reviews
The Competition and Markets Authority (CMA), has launched a series of investigations into online reviews, including one into Autotrader and Feefo.
Autotrader is under investigation for its treatment of negative reviews, with the CMA aiming to discover whether one-star reviews moderated by Feefo were not published on Autotrader’s platform, and therefore not counted towards star ratings.
The CMA said it has not reached any conclusions about whether consumer law has been broken.
It said that online reviews play a significant role in people’s decisions, and that it is essential that these are genuine and transparent.
In a statement issued online, Autotrader said: “We note that the CMA, exercising its new direct consumer enforcement powers, has today announced an investigation into a number of companies, including Autotrader and our third-party moderator, in relation to online consumer reviews.
“We endeavour always to operate as a responsible and compliant business and will co‑operate fully with the CMA’s investigation.”
Other businesses under investigation include Just Eat, Dignity and Pasta Evangelists.
Some of these businesses have been accused of using staff to write fake reviews, or offering discounts for positive reviews.
Autotrader has not been accused of either of these practices.
Sarah Cardell, chief executive of the CMA, said: “Fake reviews strike at the heart of consumer trust – with many of us worrying about misleading content when looking at reviews online.
“With household budgets under pressure, people need to know they’re getting genuine information – not reviews or star-ratings that have been manipulated to push them towards the wrong choice.
“We’ve given businesses the time to get things right. Now we’re deploying our new powers to tackle some of the most harmful practices head on.”
If the CMA finds a business to have infringed the law, it can require it to change their practices and issue a fine of up 10% of global turnover.
