Crackdown on Fake Reviews on E-Commerce Sites

Discover how the DoCA's initiative to combat fake reviews on e-commerce platforms will impact MSMEs...

The Department of Consumer Affairs’ (DoCA) decision to crack down on fake reviews on e-commerce platforms is a step in the right direction to protect consumer interests and promote fair competition. However, for micro, small, and medium enterprises (MSMEs) operating in the e-commerce space, this move presents a new set of challenges and compliance requirements.

Historically, MSMEs have needed to be more competitive when it comes to leveraging the power of online marketing and reviews. With limited resources and budgets, it has been challenging for many small businesses to gain visibility and build a strong online presence amidst the competition from larger players. Unfortunately, some unscrupulous practices, such as paid or fake reviews, have further tilted the playing field, making it difficult for genuine MSME sellers to stand out on e-commerce platforms.

The impending mandatory regulations will be finalised at a meeting on 15th May’24, which will be convened by Ms Nidhi Khare, Secretary Consumer Affairs alongside representatives of various e- commerce platforms and industry associates. Aimed at curbing fake reviews the congregation will undoubtedly help level the e-commerce playing field. However, MSMEs will need to ensure that they are fully compliant with the new guidelines to avoid any potential consequences. 

As the guidelines are finalised, it is crucial that the concerns and capacities of MSMEs are taken into consideration. Striking the right balance between consumer protection and ensuring a conducive environment for small businesses to thrive in the digital economy will be essential for the long-term success of the e-commerce ecosystem in India.