Facebook and Fraud

Facebook and FraudThe Competition and Markets Authority (CMA) has expressed concerns with regard to fake and misleading reviews on the Facebook site. At the beginning of last year, Facebook agreed to “better identify, investigate and respond to fake and misleading reviews”. As a result of the agreement, 188 groups were removed, and 24 user accounts were disabled. Facebook pledged to put measures in place to help prevent this type of content and also to investigate the same issues on Instagram.

What Does the Law Say?

The Consumer Protection from Unfair Trading Regulations 2008 prohibit unfair commercial practices and require traders to exercise professional diligence towards customers. Commercial practices that are misleading or aggressive are prohibited, along with 31 ‘banned practices’ that are said to be unfair in all circumstances, regardless of their effect on consumers. The banned practices include faking credentials, illegally selling goods, dishonest adverts and misleading after-sales information.

Do fake reviews work?

Research conducted by Ofcom in 2017 looked at media use by adults and their attitudes in order to calculate the extent to which online reviews may be used. The CMA says that fake reviews are damaging to consumers and businesses. Many people base their decisions on reviews, so if they buy an item based on a fake review, it may not be right for them, causing an honest business to miss out.

Further action

The CMA has taken further action following information that fake and misleading reviews are still appearing on sites. This second intervention has led to another 16,000 groups being removed from Facebook. Further changes have also been made to Facebook’s systems for removing and preventing such content. These changes include-

  • the suspension or banning of users who repeatedly create groups to promote, encourage or facilitate fake and misleading reviews;
  • the introduction of automated processes to improve detection and removal of the content;
  • making it harder for search tools to be used to find these groups; and
  • processes have been put in place to ensure the changes work effectively and stop the issue from returning.

What next?

A Digital Markets Unit is to be set up within the CMA imminently. New legislation is to be introduced to enforce a new code that will govern the behaviour of platforms, such as Facebook.

How can we help?

We ensure we keep up to date with any changes in legislation and case law so that we are always best placed to advise you properly. If you would like to discuss any aspect of your case, please contact Martin Smith on 0121 726 9116 for a free, confidential, no obligation chat.