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regular-article-logo Tuesday, 05 November 2024

India launches crackdown on fake consumer reviews

Commerce players such as Amazon and Flipkart will have to voluntarily disclose all paid consumer reviews of products and services offered on their platforms

Reuters New Delhi/Bangalore Published 22.11.22, 03:03 AM
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India launched a crackdown on Monday against fake consumer reviews and unverified ratings in a bid to make the online world and e-commerce more authentic and less misleading for users.

The government has drafted guidelines for companies from Alphabet Inc’s Google, Meta Platform’s Facebook and Instagram, and Amazon.com Inc to travel sites and food delivery apps that depend on reviews to validate products and services. Positive reviews help generate sales and interest from potential buyers.

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Some companies have been criticised by consumers and industry experts for downplaying negative reviews, or accepting fake ratings, making the vetting process difficult for buyers.

The named companies did not immediately respond to a Reuters email.

“Feedback mechanisms such as reviews are essential for consumer interest. We welcome the steps being taken by the government ... and are obliged to be a part of the constituted committee,” said a spokesperson for Zomato.

The department of consumer affairs set up a committee in June to develop a framework for checking fake and deceptive reviews in e-commerce, the ministry of consumer affairs, food & public distribution said.

“The new guidelines for online reviews are designed to drive increased transparency for both consumers and brands and promote information accuracy,” said Sachin Taparia, founder of Local Circles.

“As far as platforms like Google and Facebook go, the new rules will require them to validate the real person behind the review through specified 6-8 mechanisms which means fake accounts created just for review writing will go away over time or won’t be able to review,” said Taparia.

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