To protect consumer interest, the Centre on Saturday announced that it will develop a framework to curb fake reviews posted on e-commerce websites. Online customers rely heavily on the reviews given their inability to physically inspect the product. This makes them vulnerable to fake reviews when they look for the opinions and experiences of users who have already purchased the good or service online.
“The Department of Consumer Affairs (DoCA) will develop this framework after studying the present mechanism being followed by the e-commerce entities in India and best practices available globally,” the Ministry of Consumer Affairs, Food & Public Distribution said.
The move came a day after Consumer Affairs Secretary Rohit Kumar Singh held a meeting with various stakeholders on the issue. During the meeting, issues related to “paid reviews, unverifiable reviews and absence of disclosure in case of incentivised reviews which make it challenging for consumers to recognise genuine reviews” were discussed.
The Ministry, along with the Advertising Standards Council of India (ASCI), held a virtual meeting with various stakeholders, including e-commerce entities, to discuss the magnitude of fake reviews on their platforms, which mislead consumers into buying online products and services.
The experts said the modus operandi is simple: The advertiser creates a website or a Facebook page/profile, and starts selling via their page on the social media platform, taking users to their portal.
Once they receive payments for their orders, they delay in dispatching the products and by the time Facebook completes its feedback process to understand whether the advertiser is legit or a scam, the fraudsters make quick money and shut their operations once Facebook declares they are cyber offenders and treats them as “unhealthy”.
Since e-commerce involves a virtual shopping experience without any opportunity to physically view or examine the product, consumers heavily rely on reviews posted on e-commerce platforms to see the opinion and experience of users who have already purchased the good or service. “Traceability by ensuring the authenticity of the reviewer and the associated liability of the platform are the two key issues here. Also e-com players must disclose as to how they choose the “most relevant reviews” for display in a fair and transparent manner,” DoCA Secretary Rohit Kumar Singh said.
Stakeholders from e-commerce companies claimed that they have frameworks in place by which they monitor fake reviews and would be pleased to take part in developing a legal framework on the issue.
Along with DoCA Secretary, Nidhi Khare, Additional Secretary and Anupam Mishra, Joint Secretary, attended the meeting.
Manisha Kapoor, CEO, ASCI highlighted the categories of fake and misleading reviews and their impact on consumer interest. Paid reviews, unverifiable reviews and absence of disclosure in case of incentivised reviews which make it challenging for consumers to recognise genuine reviews were among the issues discussed.