Centre to develop framework to check fake reviews on E-Commerce websites

The Center will create a system to monitor fraudulent reviews on e-commerce platforms. After reviewing the current process used by E-Commerce businesses in India as well as best practises available globally, the Department of Consumer Affairs (DoCA) will build these frameworks.

In a meeting with various stakeholders such as E-Commerce entities, Consumer Forums, Law Universities, Lawyers, FICCI, CII, Consumer Rights Activists, and others, the DoCA, in collaboration with the Advertising Standards Council of India (ASCI), discussed the magnitude of fake reviews on websites and the road ahead.

Consumers rely extensively on reviews posted on e-commerce platforms to see the opinion and experience of users who have already purchased the thing or service because e-commerce entails a virtual shopping experience with no opportunity to physically inspect or scrutinise the product.

“The two main challenges here are traceability by guaranteeing the legitimacy of the reviewer and the platform’s associated liability.” E-commerce players must also reveal in a fair and transparent manner how they select the “most relevant reviews” for display, according to Secretary DoCA Shri Rohit Kumar Singh.

All parties agreed that the issue should be properly watched, and that an adequate framework for bogus reviews might be devised to handle the problem and safeguard consumers’ interests.

E-commerce company stakeholders stated that they have systems in place to monitor bogus reviews and that they would be happy to participate in the development of a regulatory framework on the subject.

The meeting was attended by Secretary DoCA, Ms Nidhi Khare, Additional Secretary, and Mr. Anupam Mishra, Joint Secretary. The impact of fraudulent and misleading reviews on consumer interest was addressed by Ms. Manisha Kapoor, CEO of ASCI. Paid reviews, unverifiable reviews, and the lack of disclosure in the case of incentivised reviews were among the topics raised, making it difficult for customers to distinguish genuine reviews.