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Amazon Commits to Tougher Measures Against Fake Reviews After UK Investigation

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Amazon has agreed to implement stronger actions to combat fake reviews on its platform, following a four-year investigation by the UK’s Competition and Markets Authority (CMA). The deal includes new enforcement powers that allow Amazon to sanction British businesses found using deceptive tactics to boost product ratings, as well as measures to detect and remove fraudulent content more efficiently.

The CMA said on Friday that Amazon’s commitments also address concerns about “catalogue abuse” — a practice where sellers attach their products to highly rated but unrelated items in order to mislead shoppers and inflate rankings. In severe cases, businesses violating these rules could face bans from Amazon’s platform altogether. Individual users who post fake reviews may also be prohibited from submitting further reviews.

According to the CMA, approximately 90% of consumers rely on online reviews when making purchasing decisions, making the integrity of reviews crucial for fair competition and consumer trust. Amazon’s new obligations will include robust systems to identify and eliminate manipulated reviews and enforce stricter penalties for offenders.

The regulator began its investigation into Amazon and Google in 2021 over potential breaches of consumer protection law. In January, Google also made similar commitments to improve the reliability of online reviews. CMA chief executive Sarah Cardell praised Amazon’s actions, stating, “These new commitments matter and help set the standard.”

The CMA has recently been granted new enforcement powers allowing it to independently determine if consumer law has been broken. It can now issue fines and compel businesses to improve their practices without needing to go through lengthy court proceedings.

In parallel, the CMA is conducting a broad assessment of online review platforms as part of its ongoing work to ensure compliance with its newly updated reviews guidance issued in April.

Shein Faces EU Complaint Over ‘Dark Patterns’ in Online Sales Tactics

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Pan-European consumer group BEUC has filed a formal complaint with the European Commission against fast-fashion giant Shein, accusing the online retailer of using manipulative design techniques—commonly known as “dark patterns”—to push consumers into buying more on its app and website.

According to BEUC’s report, Shein employs a variety of aggressive tactics, including pop-ups that warn users they may lose discounts if they leave the app, countdown timers that pressure customers to complete purchases quickly, and infinite scrolling that keeps shoppers continuously engaged. BEUC argues that these techniques encourage overconsumption and may violate EU consumer protection laws.

The organization also highlighted the excessive notifications sent by the Shein app, with one example showing a single phone receiving 12 push notifications in one day. BEUC Director General Agustin Reyna stated, “For fast fashion you need to have volume, you need to have mass consumption, and these dark patterns are designed to stimulate mass consumption.”

Reyna added that a satisfactory resolution would require Shein to remove these manipulative features, though he questioned whether the company has sufficient incentive to alter practices that drive sales volume.

Shein Responds, Tensions Remain

In response, Shein said it is cooperating with EU regulators: “We are already working constructively with national consumer authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations.” The company also expressed frustration that BEUC had declined its request for a meeting.

Shein’s success in Europe has been fueled by its highly engaging app experience, which incorporates gamification elements. For instance, its “Puppy Keep” game allows users to care for a virtual dog and earn reward points redeemable for free items. These points accumulate through daily log-ins, frequent scrolling, and purchases—further driving customer engagement and sales.

Broader Industry Under Scrutiny

BEUC’s complaint extends beyond Shein, calling on European consumer protection authorities to investigate similar practices across the broader fast-fashion industry. “Dark patterns are widely used by mass-market clothing retailers,” BEUC noted, urging regulators to expand their inquiry.

A total of 25 BEUC member organizations from 21 countries, including France, Germany, and Spain, have joined the complaint filed with the European Commission and the EU consumer protection network.

This latest action follows a separate warning issued by the European Commission last month, which notified Shein that some of its practices breach EU consumer law. The Commission warned that Shein faces potential fines if it fails to address these concerns.

Increasing Regulatory Pressure

In addition to consumer protection concerns, Shein is also under investigation by EU tech regulators for its compliance with online content rules as part of the bloc’s broader push to tighten oversight on major digital platforms.

Shein’s rival Temu, another rapidly growing discount platform, has also been targeted by BEUC for similar dark pattern practices.

Cleo AI Settles FTC Deception Charges for $17 Million

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Cleo AI has agreed to pay $17 million to settle U.S. Federal Trade Commission (FTC) charges that it misled consumers about cash advance amounts and processing times, the agency announced Thursday.

FTC Allegations

  • Cleo falsely advertised cash advances of $250 to $500, but most users received as little as $20.

  • The company promised “instant” or “same-day” cash transfers but often delayed payments until the next day—while charging extra fees for expedited service.

  • Cleo made subscription cancellations difficult, continuing to charge $5.99 or $14.99 monthly fees even after repeated cancellation requests.

Settlement Terms

  • Cleo must improve transparency, obtain informed consent before charging for services, and make subscription cancellations easier.

  • The $17 million settlement will be used to refund affected consumers.

Company Response

While denying any wrongdoing, Cleo’s general counsel, Colin Jones, said the FTC’s claims were inaccurate and reflected a misunderstanding of the company’s operations. He stated that settling was the best course of action to allow Cleo to focus on helping Americans improve their financial lives.