Fake reviews of own products or services may soon be banned from next year under new European laws.
The aim is to protect consumers from misleading promotions.
As you may know the Advertising Standards Associations (ASA) can take action in certain circumstances but the growth of online trading has left consumers vulnerable nevertheless and we can expect to see the law toughened in future.
Consumers rely increasingly on online forums and message boards for so called “impartial advice” and “reviews” by other independent consumers but this useful system is being undermined by producers and service providers who pretend to be genuine third party reviewers who then write about the hotel, restaurant, product or service in glowing terms.
Civil remedies aside-typically the tort of deceit and misrepresentation-it is felt that prevention is better than cure (especially as most consumers would be unaware they had been “conned”).
The EU Directive on Unfair Commercial Practices creates new rights for consumers and introduces the novel concept in English law of “ a duty to trade fairly” which is vague so that we might expect a flood of test cases to follow from disgruntled buyers as a result of the new law.
Obviously if traders have so written such reviews they should take down in advance of the commencement of the law not least because the OFT and other organisations with an interest in combating unfair commercial practices such as Which? and Trading Standards can intervene.
The UK Government’s response is awaited to the Directive on levels of penalties for transgressors.
The law is wide-ranging and will impact on any business that engages in “sharp practice” including:
• False “closing down” sales by shops
• Fake third party house sale offers by estate agents to boost the offer price
• “Off the wall”(i.e. invented) house price auction offers by sellers/auctioneers to lure buyers to increase their offer price
• Door to door selling
• Pester purchasing whereby children are manipulated to harangue their parents to buy.
• Restaurants and hotels that write their own reviews.
• EBay sellers who review their own service level/delivery record reliability.
Traders are advised to seek appropriate reviews of how they sell in order to avoid embarrassing prosecutions and fines.
