The Competition and Markets Authority is investigating Just Eat, Autotrader, Feefo, Pasta Evangelists, and Dignity over fake reviews. The watchdog fears these firms might be misleading consumers with manipulated star ratings and hidden incentives for positive feedback.

Online reviews influence billions of pounds in spending each year, but concerns are growing about the accuracy of this information. Sarah Cardell, CMA chief executive, said: 'Fake reviews strike at the heart of consumer trust.'

The CMA is probing whether these companies deny customers a 'fully rounded' picture by not including all negative feedback or offering discounts in exchange for positive reviews. It also investigates whether Just Eat's rating system inflated certain businesses' star ratings.

While all firms claim to be co-operating, Sue Davies from Which? hopes enforcement will follow: 'Investigations are a welcome first step, but the regulator must be prepared to get tough and issue serious fines.'

The CMA has new powers to fine firms without needing court approval since April 2024. Despite this, critics argue it must use them more strictly against big tech firms like Amazon and Google.