In a move which could impact the business of e-commerce giants like Amazon, Flipkart, Swiggy, Zomato, the Department of Consumer Affairs will issue guidelines to bar online companies from publishing fake reviews of their products.

A hefty fine ranging from Rs.10 Lakh to Rs.50 Lakh could also be imposed.

The guidelines have been prepared by the Bureau of Indian Standards (BIS) on the basis of the report by a committee which was formed in June of this year.

The committee comprised stakeholders like the Advertising Standards Council of India (ASCI), the Confederation of Indian Industry (CII) and the Department of Consumer Affairs.

The decision has been made after the Department of Consumer Affairs received complaints regarding fake reviews since many e-commerce companies also get fake reviews of products sold by their rival companies. The reason for this is mostly to wrest their customer base and such fake reviews influences consumer choices and also hamper the spirit of competition.

Sources said that according to the proposed guidelines, the reviewers who write fake reviews could be asked to submit their identity details like bills, documents, pictures and even videos to e-commerce platforms for cross verification through KYC methodology. Along with that e-commerce platforms may also be asked to remove unverified buyers and reviewers and failure to do so would attract penalties and action against them.

The guidelines will not only be applicable to shopping platforms but also food delivery apps and service providing apps.

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