UK’s CMA probes Just Eat over misleading online ratings

Core Viewpoint - The UK Competition and Markets Authority (CMA) has initiated an investigation into Just Eat regarding suspected fake and misleading online reviews, focusing on compliance with the Digital Markets, Competition and Consumers Act (DMCC Act) 2024 [1][2]. Investigation Details - The CMA is examining whether Just Eat's ratings system has artificially inflated scores for certain restaurants and grocery outlets, potentially misleading consumers about service quality [2]. - This inquiry is in its initial fact-finding phase, and no conclusions have been drawn regarding Just Eat's legal compliance [3]. Broader Context - Just Eat is one of five companies under scrutiny in this enforcement round, which also includes Autotrader, Feefo, Dignity, and Pasta Evangelists [3]. - The CMA highlighted the significant influence of online reviews on consumer purchasing behavior, guiding billions of pounds in spending annually in the UK [3]. Importance of Accurate Reviews - Research by Which? indicates that 89% of consumers consult reviews when considering a product or service, emphasizing the need for accurate and trustworthy information [4]. - The CMA's investigation will cover the entire review process, from comment collection to verification and presentation, including star ratings that consumers rely on [4]. Regulatory Statement - CMA chief executive Sarah Cardell emphasized the detrimental impact of fake reviews on consumer trust and the necessity for genuine information, especially as household budgets are under pressure [5].