The Competition and Markets Authority (CMA) has launched investigations into several major companies over allegations of fake and misleading customer reviews, raising concerns across the estate agency sector about potential scrutiny of similar practices.
The watchdog is examining claims that food delivery platform Just Eat and automotive marketplace Autotrader have published misleading customer feedback. Reviews site Feefo, funeral services provider Dignity, and meal delivery company Pasta Evangelists are also under investigation for potential breaches of consumer law, according to BBC News.
Regulatory action
Sarah Cardell, CEO of the CMA, stated: “Fake reviews strike at the heart of consumer trust. 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.”
Cardell added: “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.”
Sue Davies, Head of Consumer Rights Policy at Which?, said: “Investigations are a welcome first step, but enforcement will be key: the regulator must be prepared to get tough, use its powers and issue serious fines if these companies aren’t playing by the rules.”
Implications for estate agencies
The investigations have particular relevance for the property sector. Last year, the CMA warned that estate agents caught writing fake reviews, or using agencies that submit them on their behalf, face being banned by Google. This follows broader concerns about digital marketing practices, as estate agents navigate evolving online advertising strategies.
Consumer group Which? previously published a list of 40 businesses, including an unnamed London estate agency, that had allegedly received identical positive reviews from a single reviewer.
The CMA’s use of enhanced enforcement powers signals a tougher regulatory approach to online review manipulation across all sectors. Estate agencies, which rely heavily on customer testimonials and online ratings to attract clients, may face increased scrutiny as the watchdog extends its investigations beyond the initial group of companies.
