EU Commission Finds Two-Thirds of EU Websites Violate Consumer Protection Laws
The results of an European Union-wide website screening into misleading practices in relation to online reviews have revealed that the majority of websites checked violate European Union law.
Online consumer reviews on 223 major websites were checked as part of the recent “sweep,” which was conducted by the European Commission and the Consumer Protection Cooperation (CPC), a network of authorities responsible for the enforcement of consumer protection laws within the EU, Iceland and Norway.
The verdict: almost two-thirds (144, or 64.5%) of the websites checked, including marketplaces, online shops, booking websites and search engines, “triggered doubts about the reliability of the reviews” and authorities could not confirm that these merchants were doing enough to ensure that reviews left on their pages were given by consumers that actually used the product or service being reviewed.
According to Commissioner for Justice Didier Reynders, “Consumers very often rely on online reviews when shopping or booking online. I don’t want consumers to be tricked. I want them to be able to interact in a trustworthy environment.
Reynders added: “I insist on one specific point: online businesses must provide consumers with clear and visible information on the reliability of such reviews. Today’s results are a clear call for action. We will ensure EU law is respected.”
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Screening of the websites also revealed that only 37% of the targeted 223 websites inform consumers how reviews are collected and processed on the review page itself, while others mentioned it in small print elsewhere on the page, for example in their legal terms and conditions. For 104 websites, that information was completely left out and not made available to consumers.
The investigation also showed that 118 websites did not contain any information about how fake reviews are prevented, making it impossible for consumers to verify if reviews were written by consumers that actually used the product or service.
When it came to incentivized reviews, which sometimes resulted in a monetary award, 176 websites did not mention that they were prohibited by their internal policies. In the cases where they were allowed, the merchants did not ensure that they would be flagged as incentivized.
Based on these findings, “consumer protection authorities concluded that at least 55% of the checked websites potentially violate the Unfair Commercial Practices Directive, which requires that truthful information is presented to consumers to allow an informed choice,” the report stated, adding that they had “doubts” for another 18%.
The sweep was a result of a 2020 Market Monitoring Survey, which showed that consumers rely heavily on reviews for online purchases, with up to 71% of them considering reviews an important factor when booking a holiday accommodation. That revelation led authorities to decide to carry out the screening last year.
Armed with this new information, the national authorities are planning to contact the businesses concerned to make the necessary changes on their websites, and initiate enforcement actions where it deems necessary.
Legislation will also apply, as of May 28, requiring traders to inform consumers about how reviews are managed. The new law will also make it illegal to sell, buy or submit false consumer reviews in order to promote products online.