Fake reviews on E-Commerce platforms under Centre’s radar

The Department of Consumer Affairs (DoCA), in collaboration with the Advertising Standards Council of India (ASCI), will hold a virtual meeting on Friday, May 27, 2022, with various stakeholders to assess the magnitude of fake reviews on E-Commerce platforms that mislead consumers into purchasing online services or products.

The discussions will be centred on the impact of fraudulent and misleading reviews on consumers, as well as potential preventative actions. In this regard, Secretary DoCA, Shri Rohit Kumar Singh, has written to all stakeholders, including E-Commerce entities such as Flipkart, Amazon, Tata Sons, and Reliance Retail, as well as Consumer Forums, Law Universities, Lawyers, FICCI, CII, Consumer Rights Activists, and others, inviting them to attend the meeting.

Along with the letter, Shri Singh sent a European Commission Press Release dated January 20th, 2022, outlining the results of an EU-wide screening on online customer evaluations across 223 major websites. The screening results show that at least 55% of the websites violate the EU’s Unfair Commercial Practices Directive, which requires truthful information to be supplied to consumers in order for them to make an informed choice. Furthermore, the authorities could not establish that traders were doing enough to ensure that evaluations were real, i.e., if they were written by consumers who had actually utilised the product or service that was evaluated, in 144 of the 223 websites examined.

‘It is significant to emphasise that with increased internet and smartphone use, customers are increasingly shopping online to purchase products and services,’ according to the letter. Because e-commerce is a virtual shopping experience with no ability to physically inspect or study the product, consumers rely largely on reviews posted on e-commerce platforms to see the opinion and experience of users who have already purchased the goods or service. As a result, the right to be informed, which is a consumer right under the Consumer Protection Act of 2019, is breached as a result of fraudulent and misleading evaluations.’

‘Because the matter affects consumers who purchase online on a regular basis and has a significant influence on their consumer rights, it is critical that it be investigated with greater attention and depth,’ the letter adds.