Fake reviews probe targets online food delivery and car services

What happened: The UK's Competition and Markets Authority (CMA) has launched an investigation into Just Eat over suspected fake and misleading online reviews, following a probe targeting multiple firms in the online food delivery and car services sectors. The CMA is examining whether Just Eat and other companies have broken consumer protection laws. Separately, a whistleblower revealed a scheme involving paid fake Google reviews for various businesses, including hotels and holiday flats.

Market impact: The probe affects the online food delivery and car services sectors, with Just Eat and Autotrader among the investigated firms. The CMA's action could lead to reputational damage and potential fines for the companies involved, impacting their market valuation. Moreover, it may prompt consumers to question the authenticity of online reviews, affecting demand for services with questionable ratings.

What to watch next: On October 15, 2024, the CMA will provide an update on its investigation into Just Eat, which could reveal the extent of the suspected wrongdoing and the potential penalties. Additionally, the CMA's broader probe into fake reviews across multiple sectors is expected to conclude in Q1 2025, with results that could further shape the online review landscape.