Tech giant Google has pledged to make significant changes to its approach to fake reviews, the Competition and Markets Authority (CMA) has said.

The US company is now required to sanction UK businesses that use fake reviews to boost their star ratings, as well as individuals who are known to have written fraudulent reviews for British companies.

The UK's competition watchdog said that the company has also committed to putting warning alerts on business profiles that use fake reviews.

The move follows an investigation into Google by the regulator after it raised concerns about the company potentially breaching consumer law by failing to take sufficient action against fake reviews on its platforms.

The commitments come as the CMA estimates that as much as £23 billion of UK consumer spending is potentially influenced by online reviews every year.

Research by consumer champion Which? also shows that as many as 89 per cent of consumers use online customer reviews when researching a product or service.

Sarah Cardell, chief executive of the CMA said that when it comes to tackling fake reviews, Google is now “leading the way.”

“Left unchecked, fake reviews damage people’s trust and leave businesses who do the right thing at a disadvantage,” continued the chief exec. “The changes we’ve secured from Google ensure robust processes are in place, so people can have confidence in reviews and make the best possible choices.

"They also help to create a level-playing field for fair dealing firms.”

The watchdog said that any business that publishes reviews should consider Google’s undertakings to see whether their own practices require changes, adding that failure to do so could lead to an investigation and possible fine.

Google must now report to the CMA over a three-year period to ensure it is complying with the promises it has made.

Last year, parliament passed legislation to give the CMA stronger consumer powers.

This law, expected to come into force in April, will enable the Authority to decide independently when consumer law has been broken, without taking a case to court.

The Digital Markets, Competition and Consumers Act 2024 will empower the CMA to fine firms that break the law up to 10 per cent of their global turnover.

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