The “democratization” of social media has presented the hospitality sector with a massive challenge. The way people look for places to eat has long shifted from word-of-mouth recommendations to simple online searches and reviews from other users on platforms like TripAdvisor. However, many of these reviews may not be accurate or truthful. In response, Italy has thought of an innovative solution.
Proof of ID. The Italian government recently proposed a law to reduce the impact of fake and sponsored online reviews, which can negatively affect hotels, restaurants, and tourist attractions. According to this law, users must provide verifiable identification and proof of their visit before posting a review.
Additionally, reviews will have to be relevant and detailed and submitted within 15 days of the visit. Companies can request the removal of reviews they consider false or irrelevant and comments shared more than two years ago. Moreover, paid or incentivized reviews will be prohibited. Meanwhile, Italy’s antitrust agency will enforce penalties.
The impact of deception on revenue. According to the Italian Ministry of Enterprises, manipulated reviews can affect between 6% and 30% of revenues in the tourism and hospitality sector. This leads to significant economic losses and undermines consumer confidence.
The impact is especially serious in a country like Italy, where tourism is a cornerstone of the economy and a vital part of its cultural heritage. As such, the proposed law aims to restore fairness in the market by protecting both legitimate businesses and consumers from misinformation and unfair competition.
Unanimous industry support. Since its announcement, the proposed law has garnered the support of organizations such as Codacons, a leading consumer association, and Fipe-Confcommercio, the business federation of the restaurant industry.
Both organizations view the initiative as a crucial step toward ensuring fair competition and combating deceptive advertising. In this context, Fipe-Confcommercio CEO Roberto Calugi said, “The plague of false reviews has for too long put the catering sector and public establishments at risk, creating economic damage and compromising consumer confidence.”
Privacy concerns and criticism. In Italy, some sectors are worried that the mandatory provision of personal data and the ban on anonymous reviews will significantly reduce the number of real comments, limiting valuable feedback for companies.
Michele Carrus, the chair of the consumer association Federconsumatori, told Reuters that while the issue needs to be addressed, it’s crucial to find a balance that respects both privacy and users’ freedom of expression.
The importance of online reviews. Despite these challenges, many in the business sector have expressed support for the proposed law. Catia Silvestri, a restaurant manager in Rome, told The Guardian that reviews are a useful tool for ensuring quality service, although she recognizes the need for regulations to prevent abuse.
The proposed law also aims to differentiate genuine opinions from manipulated ones, enhance the credibility of digital platforms, and help consumers make informed decisions.
Digital transparency. Daniela Santanchè, Italy’s tourism minister, described the proposed law as a significant step forward in protecting Italian businesses and ensuring consumer and tourist confidence. Given the growing importance of digital commerce, Italian legislation could become an international model for addressing the issue of fake reviews, fostering a fairer and more transparent environment in the tourism sector and potentially beyond.
An ongoing problem. By 2021, there were already more than a million fake reviews on TripAdvisor, most of which were purchased. Interestingly, in Italy, posting false reviews on TripAdvisor is already a criminal offense. Additionally, the same issue exists on platforms like Amazon, where individuals are even paid to post fake reviews, undermining the reliability of the online rating system.
Italy isn’t the only European country targeting fake reviews. For instance, in 2021, Spain’s Ministry of Consumer Affairs requested Google to act as a filter and clarify the parameters used to classify results.
In the background lies a more systemic issue. The online opinion system may be flawed, not only due to fake reviews but also because of a more pervasive problem. The debate could be traced back to the early days of Web 2.0, when naivety or optimism led to the assumption that everyone would be fair-minded enough to provide honest feedback.
However, the reality doesn’t seem to support this assumption.
Although Italy’s proposal encounters challenges concerning privacy and implementation within a specific sector, it’s setting a precedent for regulating the digital environment. This approach could inspire other countries to adopt similar measures and potentially lead to a broader debate on the topic.
Image | Miglė Vasiliauskaitė
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