- with Inhouse Counsel
Trader recommendation platforms help consumers find trustworthy businesses, but the CMA says too many are falling short on transparency and accuracy.
In 2024, the CMA published guidance setting out six core principles for these platforms: don't mislead consumers, vet traders properly, handle complaints fairly, monitor trader performance, enforce sanctions against problem traders, and manage online reviews impartially. That last point carries extra weight now that fake reviews are specifically addressed by the Digital Markets, Competition and Consumers Act 2024 (DMCCA).
What the CMA found
Following a recent review, the CMA has written to several platforms flagging concerns and urging them to act. It acknowledged pockets of good practice, such as clearer information about trader checks, accessible complaints processes, and transparent sanctions policies, but identified four key problem areas.
Misleading claims. Some platforms are still making unsubstantiated claims about trader quality, reliability or suitability. If a platform says traders have been checked, those checks need to actually happen.
Weak vetting and monitoring. Platforms must verify traders' credentials, including mandatory accreditations like Gas Safe registration, and keep those checks up to date. One-off vetting is not enough; the CMA found some platforms are not making sure that initial checks remain accurate over time.
Inadequate complaints processes. While some platforms have improved, others still lack a clear and accessible route for consumers to report problems and have them dealt with promptly.
Failing to tackle problem traders. When issues arise, platforms need to act swiftly, including banning traders where necessary. The CMA found some platforms lack the measures to do so.
The CMA and Trading Standards have made clear they will continue monitoring, and the stakes are now high. Under the DMCCA, the CMA can directly fine businesses up to 10% of total turnover and order compensation for affected consumers. Trading Standards and other enforcers can also seek fines through the courts.
The CMA has a simple message: comply now, or risk enforcement later.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
