BACKGROUND

The ACCC found that 35% of the 137 businesses it recently reviewed had engaged in conduct which could manipulate reviews.

A serious issue was identified where businesses engaged third-party professional reviewers or review removalists.

These reviewers or removalists were tasked to manage the businesses’ online reputation.

When the ACCC reviewed these kinds of businesses, they found they provided services to create fake reviews, and prevent, edit, or remove negative reviews. They also directed customers with a positive experience to post a public review but those with a negative experience to contact the business directly.

The ACCC warns that any business that seeks to create fake reviews, edit or remove genuine negative reviews with the intention of inflating their own ratings, lowering their competitors’ ratings or hiding genuine negative reviews from public view will be in breach of Australian Consumer Law.

Any business that provides reviews or review removals may also be contravening the said law.

LEARNINGS

1.      You must ensure that you are asking for reviews in a fair and consistent way, and if any of your reviews are incentivised, they must be labeled as such.

2.      You cannot suppress, remove, edit or add positive elements to genuine negative reviews.

Learn more about the Australian Consumer Law and how to avoid its violation and consequences. Contact us for legal guidance.