The Italian Competition Authority (AGCM) imposed a penalty of EUR 4.5 million on the company Facile Ristrutturare and its parent company for publishing non-authentic positive opinions (as they come from their own employees and collaborators) on two online review platforms and – via their own site – a false claim based on the percentage of customers satisfied with the services offered.
The Authority has assessed these activities as unfair and misleading commercial practices, as they are likely to mislead consumers as to the choice of the trader to whom the provision of a complex and high-cost service such as the renovation of their home should be entrusted.
In addition, two specific hypotheses of misleading practices concerning reviews have recently been introduced in the Italian Consumer Code, consisting of:
-indicating that reviews are sent by consumers who have actually used or purchased the product without taking reasonable and proportionate steps to verify its authenticity,
-sending, or instructing third parties to do so, false reviews or false endorsements.
The AGCM also found that there was a violation of the Italian Consumer Code by applying a hidden cost to consumers when purchasing finishing materials through Facile Ristrutturare and from its partner suppliers at a 10% preferential VAT rate.
This was done through the preparation of two separate estimates: the first by the supplier of the materials and headed Facile Ristrutturare (but signed by the consumer) with VAT at 22% and the second by Facile Ristrutturare with increased taxable and VAT at 10%, so the total bill of supply was the same.