Consumers are to be better protected from fake reviews and subscription traps under new measures that give the competition watchdog greater powers to crack down directly on rogue online traders.
The measures include making it ‘clearly illegal’ to pay someone to write or host a fake review and clearer rules to make it easier for consumers to opt out of subscriptions. Prepayment schemes like Christmas savings clubs will also have to safeguard fully customers' money through insurance or trust accounts.
The legislation will provide protection for shoppers' savings clubs - where consumers can pay for goods and services in instalments throughout the year - which are not currently covered by the Financial Services Compensation Scheme.
