In more detail

Details of the incident

The fake reviews were posted between November 2022 and August 2023, and the CCCS began its investigation in October 2023 after receiving complaints from the retailer's customers that reviews containing their initials and photos of the furniture in their homes were published on the retailer's website without their knowledge. The CCCS found that fake five-star reviews on the retailer's website appear to have been made by at least seven customers. The CCS found that only the retailer and its related companies had access to the relevant customers' information and were in possession of the photographs used in the reviews.

The CCCS noted that posting fake reviews would constitute an unfair practice under the CPFTA as consumers may, as a result, be deceived or misled into thinking that the reviews were genuine.

To address the CCCS' concerns, the retailer and its related entities provided undertakings to the CCCS to, amongst others, stop posting fake reviews, set up a feedback channel for customers to report fake reviews, and to remove reviews verified by CCCS or themselves to be fake. The retailer's owners have also undertaken to the CCCS not to engage in any unfair practice under the CPFTA and not to cause any of the aforesaid entities to do so in future.

CCCS' remarks

In the wake of this investigation, CCCS has stated that it will make fake or fabricated reviews an enforcement priority in the next few months, in view of the important role online reviews play in customers' purchasing decisions.

Key takeaways

This case demonstrates CCCS' continuing strict enforcement against errant companies for engaging in unfair practices in contravention of the CPFTA. If necessary, the CCCS can seek declarations and court injunctions against errant businesses. The court may also issue accompanying orders, such as requiring the business to notify its consumers about the declaration or injunction before entering into contracts with its consumers and include a statement about the declaration or injunction in every invoice or receipt. Failure to comply with the court's order may result in an offence of contempt of court.

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