Online testimonials — are you doing enough to avoid ACCC scrutiny?
By Noelia Boscana and Simone Knight
Customer testimonials about goods or services have become increasingly common, particularly via social media, and can appear on a business’s website, Facebook wall, Twitter accounts and blogs. Review platforms (such as TripAdvisor) also use testimonials and average ratings (e.g. on satisfaction or price). Online reviews present a risk for businesses as they may engage in misleading or deceptive conduct in contravention of the Australian Consumer Law.
In December last year, the Australian Competition and Consumer Commission (ACCC) released a guide to handling online reviews and review platforms. While the guide is only an interpretation of the law, it provides an insight into the ACCC’s view on the scope of a business’s obligations, including best-practice monitoring and disclosure recommendations, and can assist in avoiding scrutiny and ensuring compliance with the Australian Consumer Law.
A business that uses online reviews can inadvertently engage in misleading or deceptive conduct and breach the law if: a consumer posts a fake testimonial; fake testimonials are written by a competitor of the reviewed business; the business assumes the role of the consumer to write a review of its own goods or services; or the reviewed business edits or removes testimonials to create the wrong impression about a good or service…
Click on the link below to read the rest of the Minter Ellison briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Minter Ellison
News from The Lawyer
Briefings from Minter Ellison
This page provides a link to all the relevant discussion papers.
Despite their prevalence, there has been some uncertainty in relation to the income tax treatment of earnout arrangements.