The government is to implement laws that prevent companies advertising
falsely on the internet from next month.
The anonymity that the web provides has allowed some firms to set up sites
that pose as consumer reviews but are actually little more than free
advertising. Others post favourable comments on legitimate review sites.
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But under new rules to be implemented in April, this practice will be banned,
according to Philip Carnell at law firm CMS
Cameron McKenna.
“Companies, or those that do their advertising, will no longer be able to
falsely pose as consumers to write favourable reviews it will become a
criminal offence,” he said.
Penalties are unlikely to be too severe at first, especially as the
Office of Fair Trading (OFT) and
Trading Standards the bodies
that police the act have limited resources.
The OFT is likely to use the media to “name and shame” companies that break
the laws rather than pursuing expensive prosecutions.
Policing the web is difficult, and offences will probably not have a
dedicated unit aimed at prosecuting them, said Carnell.
“There are internet forums dedicated to unveiling big businesses that do this
kind of thing most of the prosecutions will come from companies being reported
to the regulators,” he said.
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