WEB AND MOBILE FRAUD
Government to get tough on fake reviews that mislead online purchasers
The Government is to hand the competition regulator new powers to tackle fake reviews to protect online consumers.
Business secretary Kwasi Kwarteng said the Government is targeting consumer catfishes behind bogus online ratings with new rules that make it automatically illegal to pay someone to write, or host, a fake review.
The reforms will also help regulators stamp out other tactics used to dupe online shoppers.
These include ‘dark patterns’ that manipulate consumers into spending more than they wanted to, and ‘sludges’, negative nudges such as when businesses pay to have their product feature highly on a trader’s website while hiding the fact they paid for it.
The proposals come in the new consultation on Reforming Competition and Consumer Policy, which is aimed at giving the Competition and Markets Authority enhanced powers to tackle consumer rip-offs and bad business practices.
Tough penalties for non-compliance are being put forward, with new powers for the CMA and similar enforcers to hit unscrupulous traders who breach consumer law with fines of up to 10 per cent of their global turnover, and civil fines for businesses who refuse or give misleading information to enforcers.
Business Secretary Kwasi Kwarteng said: “The UK’s economic recovery relies on the strength of our open markets and consumers’ faith in them.
“By delivering on our commitment to bolster our competition regime, we’re giving businesses confidence that they’re competing on fair terms, and the public confidence they’re getting a good deal.”
The Government is also considering speeding up processes by giving the CMA power to enforce consumer law directly rather than having to go through a court process that can take many months or even years .
