This article was published on 28 Jun 2022. Software and regulations change, so please check details before you decide.
How reliable is the mail-order company, how competent is the dentist, and is the food at the new Italian restaurant in the next village really as good as advertised? Nobody likes buying a pig in a poke, so online reviews have become an important buying criterion for many people. At first glance the equation is simple: positive reviews boost sales and are hard cash for retailers. Unfortunately, these days there is not only fake news but also fake reviews that were not written by real customers.
They mislead consumers, distort competition and undermine trust in online shops and comparison portals. To curb this abuse and strengthen consumer rights, the new EU Omnibus Directive has also applied in Germany since 28 May 2022. It requires online retailers who display customer reviews in their shop to explain whether, and if so how, the reviews are verified. One way of checking authenticity would be to allow a review only if a purchase has actually been made. Customers could receive a link to submit a review only after a successful transaction.
If you run an online shop and decide against verification, that is not in itself an offence. But only as long as you inform your customers transparently about this fact, clearly visible and right next to the reviews. Otherwise you face substantial fines, and even the mere use of fake reviews can already lead to a formal warning.
To sum up, here are the most important changes at a glance:
- Obligation to provide information on the authenticity of reviews
- Ban on misleading consumers about the authenticity of reviews
- Ban on fake reviews
- On marketplaces, the marketplace operators are responsible for the information obligation
How should you handle overall ratings?
Besides individual reviews, overall ratings are another hurdle to clear. These are the scores a single product receives when its product reviews are added up. As overall ratings are often used as an eye-catcher alongside a product image, consumers must be able to tell whether they are based on verified or unverified reviews. If both verified and unverified reviews feed into the overall result, it should be labelled as “unverified” to be on the safe side.
Get to grips with the new review rules
Today, hardly any other source of information influences online buying behaviour as much as reviews. The aim of the new legislation is therefore to put an end to misleading and hidden advertising and so improve consumer protection. That is why online retailers across the EU are required to be more transparent with their customers.
As the new Omnibus Directive underlines the value of authentic reviews more than ever, you as an online shop operator should familiarise yourself with the new rules to avoid nasty surprises. Our specialists at Web Labels will support you so that you and your business remain secure and trustworthy. After all, trust is one of the keys to success in online retail.
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