Amazon Pledges to Combat Fake Reviews in UK Following CMA Investigation

Amazon has pledged to enhance its systems to combat fake reviews and catalog abuse on its UK website, following a five-year investigation by the UK's Competition and Markets Authority (CMA). The regulatory body has expressed concerns over the prevalence of fake reviews, which can mislead consumers and distort market dynamics.

Catalog abuse, as highlighted by the CMA, involves sellers hijacking well-performing products' reviews and adding them to completely different products to falsely boost their star ratings. This practice not only harms legitimate sellers but also undermines consumer trust in online reviews.

In response to the CMA's findings, Amazon has committed to strengthening its monitoring of fake reviews and implementing stricter penalties for non-compliant sellers. The e-commerce giant aims to restore trust in its platform and ensure that consumers receive accurate and reliable information about products.

The CMA's investigation revealed that approximately 90% of UK consumers consider product reviews when making purchasing decisions. Fake reviews can result in substantial financial losses, with the CMA estimating that UK consumers' spending, influenced by online reviews, amounts to 230 million pounds annually.

Amazon's commitment to upgrading its detection systems and implementing stricter penalties for violators is expected to mitigate these issues and create a more transparent and fair marketplace. This move follows a similar commitment made by Google earlier this year, indicating a broader trend among major online platforms to address the issue of fake reviews.

The CMA's acceptance of Amazon's proposal underscores the regulatory body's confidence in the company's ability to implement effective measures to combat fake reviews and catalog abuse. The CMA will continue to monitor Amazon's progress and ensure that the agreed-upon measures are fully implemented.

Sarah Cardell, the CMA's Chief Executive, emphasized the importance of these new commitments in helping to set standards and restore trust in online reviews. She noted that with so many people using Amazon for their purchases, from buying new bike locks to finding the best coffee machines, the impact of star ratings and reviews on consumer choices is significant.