The UK competition regulator announced on Friday that Amazon (207.91, 0.68, 0.33%) has consented to take measures against false online reviews of its advertising products on the UK website. This comes five years after the UK’s Competition and Markets Authority (CMA) launched an investigation into the matter. Notably, Google (169.81, 0.42, 0.25%) made a similar commitment in January this year.
The Details of Amazon’s Commitment
Strengthening Systems Against Abuse
The UK Competition and Markets Authority stated in a statement on Friday that Amazon “has signed a commitment to enhance its existing systems to address false reviews and catalogue abuse.” Catalogue abuse, as defined by the regulatory body, involves sellers hijacking the reviews of high – performing products and attaching them to entirely different items, with the intention of falsely boosting their star ratings.
Penalties for Rule – Breakers
The CMA further noted that “Amazon has promised to impose severe penalties on companies that increase their star ratings.” These penalties could potentially lead to the exclusion of such companies from accessing its UK website.
The Significance of Reviews in Consumer Decision – Making
The regulatory body revealed that around 90% of British consumers rely on reviews when making purchasing decisions. It also added that “The annual spending of British consumers could be affected by online reviews to the extent of up to 23 billion pounds (31 billion US dollars).”
CMA’s Perspective on the Commitment
In a statement on Friday, CMA CEO Sarah Caldwell said, “From purchasing a new bike lock to finding the best coffee machine, so many people use Amazon. Clearly, star ratings and reviews have a significant impact on their choices. That’s why these new commitments are important and help set standards.” This indicates that Amazon’s new measures are expected to play a crucial role in ensuring a more reliable and fair online shopping environment for British consumers. With the increasing influence of online reviews on consumer behavior, Amazon’s commitment to combating false reviews is likely to have far – reaching implications for both the company’s reputation and the overall e – commerce market in the UK.
Related topics：
