Amazon, a leading global online retailer, has agreed to undertake significant measures to address the issue of fake reviews on its platform, as mandated by the Competition and Markets Authority (CMA). This commitment comes in response to concerns that Amazon was not adequately protecting consumers from misleading reviews, which are now explicitly prohibited under the Digital Markets, Competition and Consumers Act (DMCCA).

The CMA's investigation revealed that Amazon needed to improve its systems for detecting and removing fake reviews and addressing catalogue abuse, where sellers misappropriate reviews from popular products to enhance the ratings of unrelated items. This practice misleads consumers, who may believe they are purchasing a highly-rated product based on fraudulent reviews.

As part of the undertakings, Amazon will implement rigorous processes to swiftly identify and eliminate fake reviews and catalogue abuse. The company has also agreed to impose sanctions on businesses that engage in these deceptive practices, including potential bans from selling on the platform. Additionally, users who post fake reviews risk being banned from submitting future reviews, with their previous contributions possibly deleted.

The CMA has welcomed Amazon's proactive approach and commitment to these undertakings, which aim to bolster consumer confidence in online reviews. With approximately 90% of consumers relying on reviews for purchasing decisions, the CMA estimates that around £23 billion of UK consumer spending is influenced by online reviews each year.

Following these developments, the CMA is actively reviewing other platforms to ensure compliance with consumer law and is prepared to take further action if necessary. The new consumer regime allows the CMA to independently enforce consumer law violations, including issuing fines and mandating improvements in business practices.