Australian consumer watchdog has turned its sights on fake online reviews which it says is misleading consumers and has issued a fine of $6600 to at least one business.

The ACCC has stepped up its investigations on fake online reviews, saying that it is a breach of the Australian Consumer Code to post false testimonials and reviews.

People rely on claims by websites in their decision-making and thus the Australian Competition and Consumer Commission (ACCC) is becoming increasingly concerned they may be misled by fake reviews, chairman Rod Sims told Fairfax Media.

''Our concern is that people trust online websites more than they do company advertising or more than they do reading the newspaper. And yet if those things are not reliable … then that is both unfair to the consumer … and it is unfair to competitors.'' said Mr Sims.

It has been reported that in 2011, removalist company Citymove Pty Ltd paid a $6600 infringement notice after it admitted it published false consumer testimonials.

Fake online testimonials are in breach of the Competition and Consumer Act 2010.

Whilst OMARA is the main watchdog for RMAs, it does not exclude ACCCs jurisdiction.

The ACCC provides several useful guides for both suppliers and consumers on fair-trading: http://www.accc.gov.au/business/advertising-promoting-your-business.