Fake customer reviews could risk fines for car dealers

Positive customer reviews are an important part of any business and prove extremely useful for consumers. The problem is that fake customer reviews are an ever-increasing problem. 

To help overcome this growing issue - especially within online retail - new rules are coming into force that will prevent companies from publishing fake feedback. Providing finance solutions exclusively within the automotive sector, here at Octane Finance, we proudly work with many car dealers across the UK who rely heavily on positive feedback from customers.

In this dedicated article highlighting the dangers of fake customer reviews, we explain how the UK Government is making a stand by introducing new laws which will ban businesses from doing so… 

The problem with fake customer reviews

Back in June 2020, news outlet the Mail on Sunday published a damning report that revealed almost 50% of all five-star customer reviews online in the UK are fake. 

As any online shopper knows, the power of persuasion from customer reviews can make or break a sale. In fact, it seems that we as consumers are so heavily swayed by five-star reviews, we spend an extra £900 a year purely based on this feedback from other customers. 

The problem is, that unbeknownst to customers, many of these so-called five-star reviews could be fake. As such, the UK Government is taking big steps to ensure tougher regulations are in place to ensure businesses are no longer allowed to publish fake customer reviews.   

The Consumer and Competition Bill

It's been announced by the UK Government that a ban on all fake customer reviews will come into force as part of the Consumer and Competition Bill in autumn 2022. Businesses such as car dealerships can be issued with fines if knowingly taking part in this kind of fraudulent activity. 

Under new rules it will become illegal for a company to themselves write and post fake reviews, or pay someone else to do so - including hosting fake reviews by third parties too. This process is also known as ‘astroturfing’ which is the practice of businesses writing their own reviews to praise a particular service, product or staff member. 

Any website that publishes customer reviews is expected to only share those which are true and honest - irrelevant of their good or bad feedback. The Competition and Markets Authority (CMA) is being given new powers by the UK Government to gather evidence to investigate businesses who publish fake reviews. 

They will be urged to issue hefty fines for repeat offenders which could see them fine businesses, such as car dealerships, up to 10% of their global turnover for misinforming customers and not taking enough measures to tackle fake reviews. 

In 2021, the CMA launched an investigation into Amazon and Google. The competition regulator felt these business giants should be held accountable when it comes to monitoring and dealing with fake reviews and misleading behaviour. Their findings have led to the Consumer and Competition Bill updating its policies and taking a tougher stance on fake customer reviews. 

Customer reviews best practices

When it comes to publishing customer reviews on your car dealership’s website, it’s important that all of your staff understand the consequences of writing and posting fake reviews.

As such, The UK Rules website has outlined its recommended best practices and rules to follow when it comes to hosting customer reviews:  

• Only genuine customers should post reviews, you should never encourage anyone to pretend to be a customer. 
• Businesses should not offer freebies or rewards to customers in exchange for positive reviews. 
• Although it is not illegal to work with a third party - such as a marketing agency - you should take the necessary steps to ensure they are following the rules when it comes to posting reviews. 
• Commissioning any other business or individual to write a fake review on your behalf is strictly prohibited and you as a company will be held liable if found guilty of doing so. 

A date is yet to be confirmed for when the new bill will come into force in the UK, which will prove an absolute game-changer in terms of combating fake customer reviews. What’s important for businesses to remember is that a fake review is not a true representation of an actual customer’s genuine experience - good or bad. 

Any business found writing fake reviews about their products or services is risking costly consequences. If your car dealership has ever knowingly published fake reviews, we strongly suggest you remove the offending text from your website immediately.

If you feel you’ve delivered five-star service to your customers, then you can of course encourage them to leave a glowing review. However, it’s imperative that you resist any temptation to manipulate the outcome of the review.