INNOVATE THIS 2024 Unwrapped – Ensuring trust: Solving the problem of fake customer reviews

INNOVATE THIS 2024 Unwrapped – Andrew Winton and Daniel Mohacek, Truth Engine 

In this timely  presentation, Andrew and Daniel examined the rapidly tightening regulatory landscape around fake online reviews – a growing issue with serious consequences for businesses globally.

The session traced how reviews evolved from trusted, peer-to-peer recommendations into highly commercialised, less reliable content—driven by competitive pressure and the rise of AI-generated fakes. Under mounting pressure, some businesses have resorted to deceptive practices, inflating ratings in a race to the top and creating unrealistic expectations for consumers.

As of 24 May 2024 in the UK, businesses found manipulating reviews could face fines of up to 10% of global turnover, under the new DMCC Act enforced by the CMA. In the US, the FTC will begin enforcing similar rules in October, with fines of $51,744 per fake review. The EU also has parallel requirements under the Omnibus Directive. All three jurisdictions require companies to demonstrate they are taking active steps to monitor, audit, and correct review manipulation – whether it’s artificially positive or maliciously negative.

Andrew explained how, in sectors like travel insurance, banking, and telecoms – where products are highly commoditised – reviews have become a key differentiator and marketing tool. Travel insurers, in particular, are especially vulnerable to manipulation, with the competitive pressure creating a fertile ground for both “fake positives” left by staff and “neg bombing” campaigns from rivals aiming to damage competitors with one-star reviews.
To help businesses adapt, Andrew and Daniel showcased the Truth Engine: an AI-powered tool that detects suspicious reviews, flags anomalies, and supports companies in maintaining compliance and trust. As the regulatory net tightens, verified authenticity is fast becoming the new standard.

Their closing message was clear: regulation is coming fast, and businesses need to act now – not only to avoid fines, but to build genuine trust in an era where peer-to-peer credibility is more valuable than ever.