Full Breakdown
CMA Investigates Five Firms for Misleading Online Reviews
3/28/2026, 1:37:03 PM
Overview of the Investigation
The UK’s Competition and Markets Authority (CMA) has initiated investigations into five companies—Just Eat, Autotrader, Feefo, Dignity, and Pasta Evangelists—over allegations of fake and misleading online reviews. This probe is part of a broader effort to ensure consumer protection in the digital marketplace, particularly as online reviews significantly influence consumer spending, with research indicating that 89% of people consult reviews before making purchasing decisions.
Specific Allegations Against the Firms
The CMA's investigation focuses on several key practices:
- Just Eat: The food delivery service is being scrutinized for potentially inflating star ratings for certain restaurants and grocery partners, which may mislead consumers about the quality of their options.
- Autotrader and Feefo: The investigation examines whether Autotrader suppressed negative one-star reviews moderated by Feefo, thus failing to provide a comprehensive view of customer experiences. This could lead to an artificially inflated perception of car dealerships on the platform.
- Dignity: The funeral services provider is under investigation for allegedly asking employees to write positive reviews about its cremation services, which could misrepresent genuine customer feedback.
- Pasta Evangelists: The company is being investigated for allegedly offering discounts on future orders in exchange for five-star reviews on delivery apps, without disclosing this incentive to consumers.
Regulatory Context and Powers
The CMA's actions are bolstered by new enforcement powers granted under the Digital Markets, Competition and Consumers Act 2024, which allows the regulator to impose fines of up to 10% of a company's global turnover for violations without needing to go through lengthy court processes. This legislative change aims to address deceptive practices in the online reviews ecosystem, which includes obtaining, moderating, and presenting reviews.
Industry Response
All five companies have stated their commitment to cooperating with the CMA's investigation. Just Eat emphasized its efforts to ensure transparency in its review processes, while Autotrader expressed its dedication to operating as a compliant business. Feefo highlighted its structured moderation processes aimed at maintaining review authenticity.
Criticism and Consumer Advocacy
Consumer advocates have welcomed the CMA's investigations but stress the importance of enforcement. Sue Davies, head of consumer rights policy at Which?, stated, “Investigations are a welcome first step, but enforcement will be key: the regulator must be prepared to get tough, use its powers and issue serious fines if these companies aren't playing by the rules.”
Conclusion and Next Steps
The CMA has not yet reached any conclusions regarding potential breaches of consumer law but has indicated that it will continue to engage with the companies involved to address its concerns. The outcomes of these investigations could lead to significant changes in business practices and potential penalties for non-compliance. The CMA's ongoing efforts aim to enhance trust and transparency in online consumer reviews, a critical component of the digital economy.
