Heavy fines imposed in Europe for non-halal advertising

Sanctions of up to 900 thousand euros will be applied in the Netherlands to put an end to deceptive and unfair practices in e-commerce.

The Netherlands Authority for Consumers and Markets made a statement about this. In its statement, the authority said that those who sell fake reviews on e-commerce websites and apps could face heavy fines.

Until now the regulator could only fine online shops that buy or use fake reviews to promote their own products or services, but now those who sell such reviews can also face fines of up to 900,000 euros for each violation.

The agency's statement stressed that fake reviews prevent consumers from making the right choice, steer them towards less suitable products and services, and may lead to unfair competition against websites that operate in compliance with the rules.

Edwin van Houten, director of the consumer department, said in a statement:

Consumers must be able to trust reviews when comparing sellers. We want to reduce online fraud and deception by combating wrongful practices and by educating businesses and consumers.

In recent months the authority has also launched investigations into fake "discount timers". Such countdown timers, which push people to make an urgent decision to buy, likewise create artificial pressure on buyers.

European Union (EU) laws such as the Unfair Commercial Practices Directive also aim to protect consumers by combating deceptive, misleading online practices. In recent months the European Commission announced that it wants the online world to be as fair as ordinary offline shops.

In general, it is not right to give positive or negative reviews of goods and services of which we are not customers, which we have not bought and used, and whose quality we are not sure of.

In online trade, reviews of products and services play an important role in potential customers' decisions and make their task easier. However, in some cases business owners or third parties try to manipulate consumers by writing fake positive or negative reviews. Let us note below some nuances relating to several of its negative consequences

1. Lying is haram

Writing a fake review or selling reviews amounts to knowingly deceiving the buyer. Consumers take the reviews presented as a real indicator of the quality of a product or service, but such manipulative methods prevent them from learning the truth. Spreading false information and misleading people is not halal.

2. It harms consumer rights and satisfaction

Misleading reviews can cause consumers to choose products or services that do not match their real needs. Deceived customers either buy a poor-quality product or give up a service that is in fact good (because of the bad reviews left). This in turn leads to material and moral losses for them.

3. It creates unfair competition and harms halal entrepreneurship

A fair competitive environment in the market is one of the basic conditions of a healthy business ecosystem. Sellers who attract customers through fake reviews overshadow halal entrepreneurs who offer real quality. As a result, honestly run businesses suffer from unfair competition, which causes instability in the market economy.

4. It leads to wider economic and social consequences

As such unethical behaviour becomes widespread, consumers begin to distrust online reviews. As a result, the general trading environment is disrupted, consumer distrust grows and the country's economy is negatively affected. In addition, the spread of this approach leads to an increase in unethical advertising and marketing methods, which in the long term makes the business environment even more difficult.