Competition Bureau issues warning on online reviews posted by employees

The Competition Bureau has warned businesses to be vigilant about online reviews posted by their employees that do not properly disclose their business connections.

The bureau emphasized the need for transparent disclosure of affiliations when employees review their company or its competitors. To ensure consumers are not misled, the Competition Bureau insisted that employees openly disclose any connections they have with the business, product, or service they are endorsing, even if they are providing their honest opinion.

The bureau said disclosure is crucial to maintaining the reviewer's independence and preventing potential biases impacting consumer evaluations. The directive extends to all review platforms, including social media testimonials.

Under the Competition Act, individuals who write or allow the creation of reviews that present a false or misleading impression to consumers may face legal repercussions. The bureau underscored the importance of transparent and truthful reviews to enable consumers to make well-informed decisions when purchasing.

To assist businesses in navigating these guidelines, the Bureau recommended that businesses:

• Train employees to disclose their business connections properly when posting reviews about the company or its competitors. They should avoid posting if it is impossible to make their business connection visible within their review.
• Put in place a compliance program to prevent misleading reviews by employees and build an effective monitoring system to detect misconduct.

Commissioner of Competition Matthew Boswell said, "Online reviews often strike at the heart of a consumer’s buying decision. Shoppers trust that reviews are from real, unbiased customers, just like them. When employees post reviews without disclosing their relationship with the business, consumers are misled. We will not hesitate to vigorously pursue enforcement action against problematic reviews."

The bureau highlighted that the deceptive marketing practices provisions of the Competition Act apply to anyone promoting a product, service, or business interest. Failure to comply may result in significant penalties.