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ACCC Targeting Fake Online Reviews

The ACCC has handed down the fifth report of its five-year Digital Platform Services Inquiry, which recommends a range of new laws to address the harm caused by digital platforms to consumers, small business, and competition.

Among the laws recommended is that platforms are subject to mandatory dispute resolution processes, and stronger requirements for combating scams, harmful apps and fake reviews.

“We need more action on fake reviews from platforms whose services feature ratings and reviews, including those appearing on search, social media, app stores and online marketplaces,” ACCC Chair Gina Cass-Gottlieb said.

“These problems have been made worse by a lack of avenues for dispute resolution for consumers and small businesses, who often simply give up on seeking redress because they cannot get the digital platforms to properly consider the problem.”

Mandatory codes of conduct have also been called for, to protect and promote competition.

“We know that the expansion of digital platforms in Australia has brought many benefits to Australian consumers and businesses,” ACCC Chair Gina Cass-Gottlieb said.

“This expansion of digital platform services has also created risks and harms that our current consumer and competition laws are not always able to address.

“Our analysis has identified concerning consumer and competition harms across a range of digital platform services that are widespread, entrenched, and systemic.

“The critical positions that digital platforms hold, as ‘gatekeepers’ or ‘intermediaries’ between businesses and consumers, mean they have a broad influence across the economy, making the reforms we are recommending crucial and necessary for all Australians.”

The ACCC is also targeting unfair trading practices, especially against the vulnerable sectors of our community.

“Digital platforms that host or otherwise act as intermediaries between scammers and their victims are in a unique position to identify and stop scams and remove harmful apps,” Cass-Gottlieb said.

The ACCC’s report recommends new laws that require digital platforms to:

  • provide user-friendly processes for reporting scams, harmful apps, and fake reviews, and to respond to such reports
  • reduce the risk of scams by verifying certain business users such as advertisers, app developers and merchants
  • publish review verification processes to provide important information to readers of online reviews to help them assess the reliability of reviews on the platform
  • report on scams, harmful apps and fake reviews on their services, and the measures taken to address them
  • ensure consumers and small businesses can access appropriate dispute resolution, supported by the establishment of a new digital platform ombuds scheme.

“We are calling for service-specific codes of conduct that apply to designated digital platforms,” Cass-Gottlieb said.

“This would ensure the obligations are appropriately targeted to particular competition issues present in specified digital platform services, allow consultation with stakeholders, and provide the flexibility to address emerging and new forms of harmful conduct.”



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