Enhanced CMA powers announced to help cut fake reviews

The reforms are designed to shield the general public from rip-offs and boost competition but should also benefit businesses.

As part of this, the Government is giving the Competition and Markets Authority (CMA) enhanced powers to tackle rip-offs and bad business practices.

Kate Nicholls, chief executive of UKHospitality, said the trade body welcomed the move, which 'will help create a more level playing field for both businesses and consumers'.

She said that, in particular, the enhanced powers would help to stamp out the practice of fake reviews, which can do irreparable damage to businesses.

“We therefore believe it is imperative that online review platforms be required to act and remove malicious and false reviews where appropriate.”

But, she added 'the devil will be in the detail'.

“We will be actively engaging in the consultation process in order that consumers are safeguarded without placing any further unnecessary burdens on businesses.

“We need also be satisfied that the new CMA powers will not unfairly punish businesses and, as 70% of hospitality businesses are SMEs, that a clear right of appeal is put in place that is accessible to operators big and small.”

Nicholls said that fairness for both businesses and consumers when it came to offering refunds was crucial, and new measures must be made in the context of the struggles the sector has faced over the past two years.