Competition Bureau investigating fake reviews on Amazon

The Competition Bureau has been granted a court order compelling Amazon.com Inc. to provide it with detailed internal records related to user reviews and promotional badges. The watchdog has been investigating potential fake or misleading product reviews on Amazon's platform for almost three years. The bureau launched an inquiry into the e-commerce giant’s marketing practices back in November 2021 after it received a complaint alleging that fake reviews exist on Amazon’s platform, some of which are traded through social media groups. The bureau said it has spoken to individuals from such groups and has reason to believe that people are recruited and paid to make fake reviews for products sold on Amazon and that the Amazon platform promotes said products based on those reviews. “The bureau is looking to determine if Amazon’s marketing practices raise concerns under the deceptive marketing provisions of the Competition Act,” the watchdog said in a news release. “The commissioner is investigating, among other things, whether Amazon has a business interest in gaining extra revenue from boosts in sales flowing from allowing fake reviews, which enhance consumer perception of products offered for sale on the Amazon platform, and weighing those benefits against the harm to it that results from consumers purchasing products affected by fake reviews,” the bureau said in its application for the court order. Chief Justice Paul Crampton issued the order on Monday, mandating Amazon to produce extensive records dating back to Oct. 3, 2016. The bureau said that was around when Amazon began prohibiting “incentivized reviews,” as well as when news reports on fake reviews were increasing. The documents Amazon is required to provide include internal reports, business plans, and data analyses related to user experience, search results, product reviews, consumer complaints, and trusted markers like “Amazon’s Choice” and “Best Seller.” The bureau explained that the information should help it determine which persons are making or permitting the fake reviews and their trusted markers; whether they are misleading; whether they influence the behaviour of Amazon’s customers; whether they promote the supply or use of a product or business interest; and what factors affect how products are displayed in Amazon’s search results. Amazon expressed concerns about the administrative burden the request would impose, but the bureau emphasized its necessity for the integrity of the inquiry. The company had argued that the eight-year period covered by the order was excessive and requested a shorter time frame. However, the court upheld the extended period. “There is no conclusion of wrongdoing at this time,” the bureau affirmed. During a court hearing on June 7, discussing the request for a court order, a representative for the Competition Bureau said that Amazon has indicated it is taking steps to deal with the issue. However, there could still be room for potential underenforcement of the issue. “We don't want to be beholden to own categorization of a problem that it's aware of, so that we can see what it is acting on and what it may not be,” he said. – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca

Competition Bureau investigating fake reviews on Amazon

News | June 13, 2024

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Competition Bureau investigating fake reviews on Amazon

News | June 13, 2024

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