The Competition and Markets Authority has opened fresh investigations into five firms, including Autotrader and Just Eat, as scrutiny over fake and misleading online reviews intensifies.
The move marks an expansion of the regulator’s enforcement push following new legal powers introduced last year.
Alongside Autotrader and Just Eat, the CMA is examining Dignity, Feefo, and Pasta Evangelists.
The regulator said it has not yet reached conclusions but is assessing whether practices around ratings and reviews may have distorted consumer decision-making.
Fake review concerns widen
The CMA’s latest action reflects growing concern that manipulated reviews could mislead buyers across multiple sectors.
The regulator has previously taken action involving major platforms such as Amazon and Google, and said the new cases expand its ongoing review of businesses to 14.
The watchdog is focusing on whether companies have done enough to detect and prevent misleading content.
Online reviews have become central to purchasing decisions, with consumer group Which? previously finding that 89% of people rely on reviews when researching products or services.
How firms handled ratings
Each investigation centres on different practices linked to review systems.
In the case of Autotrader and Feefo, the CMA is examining whether some one-star reviews were removed or not published, potentially affecting how users assess customer feedback.
For Dignity, the probe is looking at whether staff were encouraged to write positive reviews about cremation services.
Meanwhile, Just Eat is being investigated over concerns that its system may have inflated ratings for certain restaurants and grocers.
Pasta Evangelists is under scrutiny over whether customers were offered incentives such as discounts on future orders in exchange for five star reviews on delivery platforms.
New powers drive enforcement
The CMA’s ability to launch these investigations follows the introduction of the Digital Markets, Competition and Consumers Act last April.
The law classifies certain practices involving online reviews as unfair and illegal.
Under these rules, the regulator can determine breaches of consumer law without going through court proceedings.
This marks a shift in enforcement, allowing faster intervention in cases involving digital platforms and online marketplaces.
Potential penalties and next steps
If violations are confirmed, the CMA has the authority to require companies to change their practices.
It can also impose financial penalties of up to 10% of a company’s global turnover.
The regulator has stated that it is still gathering evidence and has not reached final decisions in any of the five cases.
However, the investigations signal a broader effort to address concerns that manipulated ratings could undermine trust in digital marketplaces and influence consumer behaviour.
The CMA said it had previously given businesses time to improve their systems before stepping up enforcement.
It is now using its expanded powers to directly target practices considered most harmful to consumers.
The regulator added that ensuring transparency in online reviews remains a priority as digital platforms continue to shape how people compare products and services.
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