Amazon agrees to sanction sellers using fake reviews

The UK’s Competition and Markets Authority (CMA) has wrapped up a four-year investigation into fake reviews on the world’s largest online marketplace, Amazon. The results reveal widespread issues with manipulated and incentivised customer feedback.

In response, Amazon has committed to stronger measures to tackle misleading reviews on its UK platform. This move could signal the beginning of a wider industry crackdown, as the CMA is now actively sweeping review platforms to identify breaches of consumer law. 

With stricter oversight, new visibility rules, and an increased risk of enforcement, ecommerce sellers must steer clear of fake reviews or risk earning a fine, especially if selling on Amazon.

What’s changing on Amazon following the CMA review?

Ecommerce behemoth Amazon has now committed to tackling its fake review problem following the CMA’s probe, which first began in 2021. 

Amazon has agreed to fix issues of ‘catalogue abuse’, which is where sellers pluck reviews from high-performing products to add on separate listings to falsely improve star ratings. Customers could be misled into thinking they’ve found a five-star vacuum cleaner, when in reality, the reviews discuss a toaster. 

As part of the crackdown, Amazon will also sanction businesses that are found to engage in fake reviews or catalogue abuse on their site. Businesses found guilty may lose the ability to post reviews at all or be banned from selling on the site. 

Other undertakings include improving Amazon’s systems around detecting and removing fake reviews and allowing consumers and businesses to report them when they spot them. This will make it easier for the site to take necessary action.

The CMA will monitor Amazon’s compliance with the undertakings over the next year.

Sarah Cardell, Chief Executive of the CMA, said, “Star ratings and reviews have a huge impact on [consumer] choices. That’s why these new commitments matter. 

“They mean people can make decisions with greater confidence, knowing that those who seek to pull the wool over their eyes will be swiftly dealt with.”

What does this mean for online sellers?

If you’re an Amazon seller with only genuine reviews, you don’t need to worry. You may notice closer scrutiny around customer feedback, but sanctions will only apply to sellers found guilty of manipulating ratings or reviews.

Sudden spikes in 5-star ratings, incentivised feedback, or suspicious reviewer behaviour are likely to raise alarm bells as Amazon steps up its efforts to remove fake reviews. 

If any shady activity is flagged, sellers could see their listings lose visibility, especially as trust metrics become a bigger part of the algorithm.

That said, honest sellers are more likely to benefit. If Amazon successfully eliminates fake reviews from its site, it will level the playing field and rebuild consumer trust, rewarding sellers with real positive feedback with a greater share of sales.

Why customer feedback matters more than ever

Online reviews are highly influential when it comes to deciding which product to buy. A huge 90% of consumers check reviews when making a purchase, showing that customer feedback has a clear impact on conversions, SEO, and seller credibility. 

Reviews have a strong impact on customers’ opinions and are goldmines of data, so sellers should still embrace them while ensuring they are handled ethically.

For example, encourage sellers to leave reviews based on a genuine positive experience, not rewards. You can also remind buyers to leave reviews organically by using follow-up emails or physical inserts in your product packaging. It’s also good practice to monitor and respond to reviews, signalling that you’re engaged in your customers’ experiences.

As well, in November 2023, Amazon launched a Customer Review Insights tool for sellers to actively improve products and services in line with actual customer experiences. The tool offers sellers insights like review trends, customer sentiment overviews, star rating comparisons, and commonly mentioned keywords or phrases.

As regulators clamp down on fraudulent reviews, having a trusted brand, real feedback, and high customer service standards will become a truly competitive edge.