Today the Bundeskartellamt has presented the results of its sector inquiry into online user reviews. In its final report, the Bundeskartellamt explains the background to fake reviews and develops practicable approaches to solving this problem.

Andreas Mundt, President of the Bundeskartellamt: “User reviews play a key part in helping consumers make a decision when shopping online. Unfortunately, fake reviews are a widespread phenomenon. It is very difficult for consumers to distinguish between authentic and fake reviews. Sales, booking, review platforms and search engines have to assume greater responsibility and make use of all means to detect and delete fake reviews by applying technical methods to filter and analyse contents.”

Products and services that have been given many and positive reviews sell far better online than those with few or negative reviews. For service providers, manufacturers and sellers it is therefore appealing to actively work towards having as many and as positive reviews published as possible.

In its report, the Bundeskartellamt describes the practices that are commonly used and the ways in which it is possible to generate fake reviews. For example, there are service providers that specialise in selling positive reviews. For this purpose, users often receive free products or other rewards in return for positive reviews. It is also possible to use software, so-called bots, to artificially generate reviews.

Andreas Mundt: “User reviews can be very helpful. However, consumers have to be aware that reviews may be fake. Look for possible indications such as overblown language and recurring patterns, read as many different reviews as possible and take a good look at the information provided by some platforms about the authors of the individual reviews.”

The Bundeskartellamt has summarised tips for consumers on how to deal with user reviews in a short video (in German).

In the Bundeskartellamt’s view, platforms have to assume greater responsibility for the authenticity of published reviews. The inquiry has shown that many platforms could do considerably more against the publication of fake reviews. So far, most platforms merely use word filters or rely on the reporting of suspicious reviews after publication whereas only few platforms apply elaborate machine-learning methods, make use of the metadata of the review’s author or check the authenticity of reviews in advance in order to effectively combat fake reviews.

The sector inquiry also addresses the fundamental issue that in many sectors only few reviews are written. The more authentic reviews exist the more helpful they are in the context of making a decision for or against a purchase or a booking. More reviews could be generated if platforms and suppliers motivate consumers to leave reviews. This may be achieved through incentives like vouchers, raffles or small amounts of money. Especially with regard to new products free product testing could be useful. Such incentives and product tests are in line with consumer law if the reviews in question are clearly and explicitly marked. However, platforms would – in contrast to previous customary practice – have to allow this type of review to be published on their websites and enable reviewers to mark them properly.

The Bundeskartellamt initiated the sector inquiry in May 2019. In the course of its investigations, the authority surveyed more than 60 major internet platforms publishing user reviews in 16 different sectors and asked a large number of other market players to comment on this matter. The report, which has now been published, is the result of these investigations and a consultation process regarding its preliminary results in June 2020.

The Bundeskartellamt cannot initiate proceedings against individual companies suspected of having breached consumer law because, unlike in the area of competition law, the authority does not have any corresponding enforcement powers in the area of consumer protection.

The full report and a video with tips for consumers on how to deal with user reviews are available on the Bundeskartellamt’s website (both available in German only).

In addition, the key results are summarised in a new contribution to the Bundeskartellamt’s series of papers on “Competition and Consumer Protection in the Digital Economy”: “Consumer rights and online user reviews: Need for action“ .