Reports suggest that new rules in the UK are set to better protect people from fake reviews online. The proposals stated how it is “clearly illegal” to pay someone to give write reviews or host them. The rule would allow a competition watchdog to fine firms up to 10% of their global turnover for taking part in such practices. However, an industry group specified that these rules would not necessarily put an additional ‘unnecessary’ pressure on ‘businesses.’
The government specified how the average household in the UK spends around £900 every year from the influence of online reviews, with spending about £60 on unwanted subscriptions. The rule would give rise to laws against offering to write and commissioning fake reviews. This would entail websites hosting consumer reviews to responsibly take charge of checking the authenticity of them. Many websites such as Tripadvisor and Trustpilot specified how they would welcome these proposed rules and follow them adequately.
Action on subscriptions:
Additionally, the government aims to introduce rules against “subscription traps,” which businesses use to make it difficult for subscribers to unsubscribe. The rules propose that these businesses would have to provide better information to consumers before the signing of subscription contracts. The rules entail them sending a reminder during the end of a free trial or a low-cost introductory offer, allowing them to leave easily if they wish to.
Small business minister Paul Scully pointed out consumers deserved better and businesses providing them that, deserved protections from ‘rogue traders’ putting them down. Moreover, if made into law, the proposals would compel prepayment schemes to entirely safeguard customers’ money through trust accounts or insurance. The rules target prevention of issues such as collapse of Christmas savings club Farepak. They witnessed several people losing their money when it went bust in 2006.
The powers of the watchdog:
The Competition and Market Authority (CMA) would have the ability to compensate consumers. Along with it, directly impose fines of a maximum of 10% of the global annual turnover of the business that breaks the rule, or a fine of upto 300,000 pounds on an individual. According to the government, these new powers would enable cases to no longer require going through courts in case of transgression. The watchdog would simply award compensation to consumers and impose financial penalties on the business. Chief Executive of UK Hospitality, Kate Nicholls specified that CMA should not use these powers to “unfairly punish businesses,” especially small ones. She added, that there is a requirement of a clear “right to appeal.”
