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Some UK eCommerce business owners make the mistake of faking online reviews as an easy way to boost their brand’s reputation and attract more customers. However, this practice can result in serious legal risks that can negatively impact your business in the long run. This article will explore the primary legal risks to your UK eCommerce business of utilising fake customer reviews.
What are ‘Fake’ Online Reviews?
Online reviews are a crucial part of the online shopping experience, and research has shown that over 90% of consumers read online reviews before purchasing. As a result, many eCommerce businesses go to great lengths to generate positive reviews for their products and services.
Unfortunately, some business owners resort to fraudulent reviews to manipulate their online reputation. The practice of faking online reviews is known as review fraud. This can involve creating fake accounts to post positive reviews or paying individuals to post fake reviews. Review fraud can also include deleting negative reviews, which can mislead consumers and violate their trust.
Let us now consider the legal risks of faking online reviews.
1. Breach of Competition Law
Faking online reviews can constitute a breach of competition laws. This is because fake reviewers can distort the market and create unfair competition, leading to a disadvantage for honest businesses.
The Competition and Markets Authority (CMA) has stated that businesses that use fake reviews to promote their products or services may breach consumer protection and competition law. One of the CMA’s primary purposes is to encourage a level playing field and ensure businesses that comply with the relevant rules are not disadvantaged.
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2. Breach of Advertising Standards
Faking online reviews can also breach advertising standards set by the Advertising Standards Agency (ASA). The ASA is an independent regulator that enforces advertising standards in the UK. They have issued guidelines for online reviews, which require businesses to ensure that reviews are genuine and unbiased.
The ASA can investigate any form of advertising deemed misleading, false or exaggerated and may lead to legal action. In particular, the ASA has the power to investigate complaints and take enforcement action against businesses that violate the code, including fines, sanctions and restrictions on advertising.
3. Data Protection Issues
Faking online reviews can also breach data protection laws. Your business must comply with the General Data Protection Regulation (GDPR) and collect, process and store personal data securely and transparently. This includes data collected from individuals who post reviews regarding your products and services on your website.
Businesses that engage in faking online reviews collect personal information from people to create fake reviews. This personal data may include the following:
- names;
- email addresses; and
- other identifying information.
The collection of personal data for this purpose is subject to data protection regulations, and businesses must obtain the explicit consent of real customers before publishing online reviews.
Misusing personal data can result in hefty fines of up to £17.5m from the Information Commissioner’s Office (ICO). Moreover, it can significantly damage your reputation. Ultimately, this defeats the purpose of falsifying good reviews to increase your bottom line, as you will pay out hefty financial penalties to the ICO.
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4. Harm to Your Company’s Reputation
Fake online reviews can also harm your business’s reputation and credibility. Consumers are becoming increasingly aware of review fraud and quickly spot fake positive reviews. If your company engages in review fraud, it can damage your brand’s reputation and lead to losing customer trust.
Key Takeaways
In summary, faking online reviews may seem like a quick and easy way to improve your eCommerce business’s reputation. However, the legal risks of doing so can be severe and can negatively impact your business in the long run. To avoid these risks, you must prioritise transparency and honesty in your online marketing and build a reputation based on trust and credibility.
If you need help with legal advice regarding online reviews, our experienced e-commerce and online business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Modern online consumers are increasingly aware of the practice of false reviews. In this way, many individuals will google your company and check review sites if your website reviews appear too good to be true.
The main way is to consider the most recent reviews together and examine whether they share too many similarities (such as the style of writing, number of stars or name of the ‘reviewer’).
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