Online Reviews: Employees Must Disclose their Connection to the Business

Posted on August 19th, 2024 in Domestic Tax

Customer review good rating concept, hand pressing user and five star icon on visual screen for positive customer feedback, testimonial and testimony, user comment and feedback for review.

Under the Competition Act, employees posting reviews online about their employer or the competition must disclose their connection to the business, even if the individual provides their honest opinion. This requirement applies to all types of reviews, including testimonials. A January 18, 2024, Competition Bureau Canada News Release (Online reviews posted by employees: businesses could be liable) recommended that businesses establish policies and provide employee training to reduce the risk of liability. The release also recommended that if an employee cannot make the connection clearly visible in a review, they should avoid posting it. This may occur when an employee intends to provide a star rating for a product or service but cannot disclose their connection with the provider.

Ensure employees are aware of this requirement under the Competition Act and properly disclose relevant connections when posting online reviews.

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Article originally published in: Tax Tips & Traps 2024 Second Quarter – Issue 146.