Online reviews have become an important part of how Australians choose businesses and services.
For major financial decisions, such as building a home, reviews can influence choices involving hundreds of thousands of dollars.
But how transparent are the processes behind those reviews?
The Australian Competition and Consumer Commission (ACCC) provides guidance on incentivised customer reviews. Among its key principles:
* Incentives should apply regardless of whether a review is positive or negative.
* Incentives should be offered equally to customers likely to provide complimentary or critical feedback.
* Incentivised reviews should be clearly disclosed to consumers.
In December 2023, the ACCC reported that inadequate disclosure of incentivised reviews was a widespread issue identified during its online review compliance sweep.
This raises a broader regulatory question.
As consumers increasingly rely on online reviews, should regulatory oversight become more proactive?
Could regular compliance checks, greater transparency around review incentive programs, and clearer disclosure requirements help strengthen consumer confidence?
The ACCC already undertakes monitoring and enforcement activities. The question is whether the changing digital marketplace warrants more systematic scrutiny.
Online reviews are valuable precisely because consumers expect them to reflect genuine customer experiences.
Protecting that confidence should be an ongoing consumer protection priority.
ACCC guidance: