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Italy Fines Trustpilot €4 Million for Verification Lapses, Misleading Practices
Italy's competition watchdog has imposed a €4 million ($4.6 million USD) fine on Trustpilot for failing to properly confirm review authenticity and for misrepresenting its service operations. This action addresses concerns about the integrity of online consumer feedback and platform transparency.
Italy's competition regulator levied a fine of €4 million ($4.6 million USD) against the online review service Trustpilot and its associated entities. The penalty, announced on Monday, March 23, stems from the platform's inability to sufficiently confirm the legitimacy of posted reviews and for providing consumers with inaccurate information regarding its operational methods. The Italian Competition Authority determined that Trustpilot's methods for gathering feedback permitted businesses to selectively invite certain customers to submit reviews. This practice compromised the fairness of published ratings, even when the platform designated these reviews as 'verified.' Furthermore, the watchdog concluded that Trustpilot employed specific interface design elements, known as 'dark patterns,' to obscure crucial details about how its service functioned and which businesses were paying clients, violating Italy's consumer protection regulations. This regulatory action follows earlier accusations from short seller Grizzly Research, which claimed Trustpilot generated fabricated negative profiles and then pressured companies into purchasing subscriptions; Trustpilot denied these allegations. Trustpilot did not provide an immediate response to a Reuters inquiry for comment on Monday.
Key Facts
- Italy's competition regulator fined Trustpilot and its units €4 million ($4.6 million USD) on March 23.
- The penalty was imposed due to Trustpilot's insufficient verification of review authenticity and its misleading portrayal of service operations.
- The Italian Competition Authority found that Trustpilot's review collection allowed businesses to choose which consumers received invitations, affecting rating representativeness.
- This selective invitation process undermined the fairness of published ratings, even for those labelled as 'verified.'.
- Trustpilot was also found to have used 'dark patterns' in its interface design to obscure vital information about its platform and paying businesses, breaching Italy's consumer code.
- The fine follows earlier accusations from short seller Grizzly Research regarding alleged fake profiles and subscription pressure, which Trustpilot rejected.
- Trustpilot did not immediately respond to a Reuters request for comment regarding the fine.