Fake reviews will be banned and consumers will be more likely to opt out of subscriptions they do not want, according to a package of measures proposed by the UK government to stop people being robbed online.
Under the measures, it will be illegal for companies to pay someone to write or host a fake product or service review, and sites that host consumer judgments will need to take reasonable steps to verify that they are genuine.
There will also be new, clearer business rules to make it easier for customers to opt out of “subscription traps” where they pay for something longer than they want.
Companies will need to remind customers that a free trial or introductory offer is coming to an end, warn them before the contract is automatically renewed, and will need to allow people to withdraw from the contract in an easy way.
As part of measures designed to improve consumer protection, the government will give the competition authority more power to deal with theft and bad business practices, including the ability to fine companies.
If the plans are passed into law, the Competition and Markets Authority will be able to directly enforce consumer law and will have the power to fine businesses up to 10% of their global turnover for harassing customers.
Previously, consumers had to take action in court, which can be a long process.
At a time when many consumers are cutting unnecessary spending, amid rising bills and the cost of living crisis, the government has estimated that the average UK household spends around £ 900 each year after being influenced by online surveys, while more £ 60 is spent on unsolicited subscriptions.
“You will no longer visit a five-star restaurant just to find burnt lasagna or catch a subscription that has no end in sight,” said Consumer Minister Paul Scully.
“Consumers deserve better, and most companies that do the right thing deserve protection from fraudulent traders who undermine them.
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The government has already tracked the fact that the measures will give greater protection to consumers of prepaid schemes such as savings clubs – where people set aside money for Christmas or to pay for other items, usually within a year – which will have protection of customers’ money through insurance or trust accounts.
When the Farepak Christmas business collapsed in 2006, more than 100,000 people were left without access to the money saved, prompting calls for greater protection for consumers using these schemes.
The money people pay in savings clubs is not protected by the UK’s financial services compensation scheme, unlike cash held in current and savings accounts.
The government said the coronavirus pandemic, which sparked a boom in online shopping, also highlighted bad practices such as fake reviews.
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