Feefo consulted on Which? Tackling Fake and Misleading Reviews Report

Vespa Capital portfolio company Feefo, recently consulted on the Which? Tackling Fake and Misleading Reviews policy and insight report.

Research conducted by Feefo in 2022 showed that over a quarter of consumers have been misled by fake reviews and wasted money buying inferior products and 40% of SME owners have been negatively impacted by fake reviews, with knock-on effects to their business.

Feefo is the leading closed, fake-free review provider, which means only customers we know who have purchased from the business are invited to leave reviews. As a result, consumers and businesses can confidently use these insights to guide their purchasing decisions.

The negative implications of fake customer reviews are significant. Both consumers and businesses can be harmed by fake reviews, and the overall online economy can be negatively impacted.

Fake reviews erode trust, lead to poor purchase decisions and damage reputations resulting in a biased competitive environment and damage to the online ecosystem.

Serious damage can be caused by fake reviews as cited in the report with an example of the sale of a digital thermometer boosted by fake reviews preventing a consumer from knowing whether they had Covid-19 symptoms.

The Which? report concludes that the Competition and Markets Authority (CMA) needs to use the powers it is given through the Digital Market Competition and Consumers Bill and associated secondary legislation to protect consumers from fake and misleading reviews by taking meaningful action against platforms that fail to take the necessary steps. Feefo fully supports these recommendations to ensure that both consumers and businesses can be confident in utilising review platforms.