Just Eat, Feefo on the Spot as U.K’s CMA Probes Fake Online Reviews
In Focus
- The regulator says fake reviews mislead consumers
- The probe also targets AutoTrader, Pasta Evangelists, and Dignity
- The CMA can impose a penalty for violation of consumer laws
The antitrust agency in the U.K. is probing five companies over misleading online reviews, the Guardian reported. The five companies are Just Eat, AutoTrader, Feefo, Pasta Evangelists, and funeral company Dignity. The Competition Market Authority (CMA) said the investigation into fake reviews will determine whether the companies have violated U.K. consumer laws.
Impact of Fake Reviews on Consumers
While announcing the U.K.’s misleading online ratings investigation, the CMA noted that fake reviews break trust. They push buyers into making purchase decisions based on wrong information.
“Fake reviews strike at the heart of consumer trust, with many of us worrying about misleading content when looking at reviews online. With household budgets under pressure, people need to know they’re getting genuine information,” CMA Chief Executive, Sarah Cardell noted.
The regulator noted that businesses had been allowed sufficient time to fix the issue. In April 2025, the Digital Markets, Competition and Consumers Act expanded CMA’s power to investigate unfair online practices. Last year, the CMA assigned Google the strategic market status due to its dominance in search and advertising services.
The Consumer Law banned practices such as fake posts and the use of paid reviews without marking them as incentivised. The rules also outlawed practices that keep customers from viewing negative feedback.
“We’ve given businesses the time to get things right. Now we’re deploying our new powers to tackle some of the most harmful practices head on,” Cardell added.
CMA’s fake reviews crackdown comes days after the antitrust watchdog in Italy imposed a $4.6 million fine on reviews website, Trustpilot over fake reviews.
Star Ratings Under Scrutiny in New Probe
Through the latest probe, the CMA will be checking whether the ratings system used by food delivery platform Just Eat was inflated in favor of some restaurants and grocers. The company has said it will cooperate with the regulator as the investigation on Just Eat’s fake reviews takes place.
“We are working closely with the CMA to ensure the reviews and ratings on our platform are clear, transparent and easy to use,” Just Eat spokesperson stated.
AutoTrader’s misleading ratings probe will focus on whether Feefo, which handles reviews for the car company, hides one-star reviews on its platform. The investigation will also determine whether such reviews influence AutoTrader’s overall star ratings.
For Dignity, the CMA will be investigating whether staff wrote positive reviews about the company’s crematorium services. Pasta Evangelists’ probe will establish whether the firm offered customers discounts to leave five-star reviews on delivery apps.
What Penalties Can CMA Impose?
The CMA can order the target companies to review their practices if the investigations determine that they violated U.K law. The regulator would also impose a penalty of up to 10% of their annual global sales. Activists say the regulator needs to do more to enforce the law.
“Enforcement will be key: the regulator must be prepared to get tough, use its powers and issue serious fines,” Head of Consumer Rights and Food Policy at Which?, Sue Davies noted.
