Lobbying by small businesses has led to new legislation that cracks down on the use of fake reviews to influence online buying. The FSB’s Jennifer Thomas analyses the impact on those for which online trading is crucial to their business.
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Published in association with
WITH EVERYTHING going on – from rising costs to new tariffs – you would be forgiven for missing a bit of good news for once. But here it is: a major change in UK law is now in force and it could make a real difference to small businesses trading online.
Thanks to the Digital Markets, Competition and Consumers Act 2024, fake online reviews have just been effectively outlawed. You may have seen the FSB on BBC Breakfast discussing the announcement, having lobbied for these changes
Here is what matters: online reviews hold serious weight. But up until now many businesses have had to put up with fake glowing testimonials (paid for or AI-generated) and bad-faith trolling designed to damage reputations.
It is estimated that misleading reviews influence £23 billion of consumer spending a year, harming genuine businesses and confusing customers.
Here are some hard-hitting statistics:
- One in eight small businesses were hit by fake or malicious reviews in the past year
- 71% say e-commerce is crucial to their success but nearly four in ten have had trouble with unfair platform practices
The Competition and Markets Authority can now impose massive fines on platforms, based on their global revenue, if they do not act on fake reviews. That means platforms will need to:
- Remove fraudulent reviews.
- Wipe previous posts from offenders.
- Suspend or ban persistent abusers.
For small firms, this is a long-awaited step towards levelling the playing field. Platforms can no longer look the other way.
Whether you are already trading online or choosing a new platform, ask yourself:
- Is there a proper, easy-to-find system to report fake reviews?
- Do they offer a clear and fair process for investigating these reports?
- Will they act fast to take down harmful content?
This is no longer optional. It is the new standard. And the platforms will be reviewing their performance every year.
The FSB welcomes this progress but we remain vigilant. If fake reviews continue to be an issue, we believe further steps should be considered, including making the creation or purchase of fake reviews a criminal offence.
Here is to a more honest and transparent online marketplace for small businesses and the people who support them.
Jennifer Thomas is the FSB’s development manager in Northamptonshire.
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