Online reviews have become an important part of the way we shop. Whether we are choosing a restaurant, booking accommodation or buying a product online, a string of five-star reviews can make all the difference.
A recent case provides a timely reminder that those reviews need to be genuine.
In August 2026, Brand Developers Limited, trading as The TV Shop, was fined $1.104 million for breaches of the Fair Trading Act. (see Commerce Commission v Brand Developers Limited [2026} NZDC 16387). The offending covered several areas, but one of the most striking involved the way customer reviews were handled.
The Commerce Commission found that company staff had posted positive reviews without disclosing their connection with the business. In some cases, reviews were posted by people who had not even used the product concerned. Friends and family were also encouraged to post reviews.
At the same time, negative reviews were treated quite differently. One, two and three-star reviews could be withheld unless the customer responded to a follow-up email, and during one period no low-rating reviews were published at all.
The Court described the conduct surrounding the reviews as deliberate and systematic.
CONSUMER RIGHTS DO NOT STOP AT REVIEWS
The case went further. The TV Shop was also found to have misled some customers about their rights under the Consumer Guarantees Act.
Those rights exist independently of any manufacturer’s warranty, money-back guarantee or “risk-free trial”. Where goods do not meet the guarantees provided by law, consumers may be entitled to a repair, replacement, refund or other remedy depending on the circumstances.
The Court also considered advertising describing items as “free”, “bonus” or a “special offer” when the item was in reality always supplied as part of the product.
A LESSON FOR CONSUMERS AND BUSINESSES
For consumers, the case is a useful reminder not to rely entirely on star ratings when making a purchasing decision.
Look at the substance of reviews, consider reviews from more than one source and be alert to a suspiciously perfect pattern of feedback.
For businesses, the message is even clearer. Online reviews, testimonials, discounts and promotional offers are advertising. The Fair Trading Act applies to them just as it does to more traditional marketing.
Businesses should not manufacture positive feedback, conceal negative feedback in a way that creates a misleading impression, or describe something as “free” when the customer is effectively paying for it.
The growth of online shopping has changed the way products are promoted, but the underlying principle remains straightforward: Consumers are entitled to accurate information when deciding where to spend their money.
