ITALY’S COMPETITION WATCHDOG slapped TripAdvisor with a €500,000 fine for failing to warn users that some of the opinions posted on the popular review website may be fake.

The hefty fine comes after a seven-month investigation by the consumer agency.

TripAdvisor adverts emphasise “the authentic and genuine nature of the reviews, persuading consumers to believe the information is always reliable and reflects real tourist experiences,” the AGCM said in a statement.

The watchdog unearthed a “practice of spreading misleading information about the sources of the reviews” — a practice it said it had now banned.

The AGCM had launched an investigation into the company after it received complaints from both consumers and hotel and restaurant owners, saying the review system was unfair and unclear because fraudulent reviewers were not flagged.

The company has 30 days to pay the fine and 90 days to explain to the AGCM how it plans to ensure in the future that user choices are not based on information “which does not correspond with reality”.

However, TripAdvisor has said it will appeal the decision, adding that its anti-fraud team do much to protect consumers from “the small minority of people who try to cheat our system”.

“We firmly believe that TripAdvisor is a force for good — both for consumers and the hospitality industry,” it said in a statement.

© – AFP 2014 with reporting by Sinéad O’Carroll

Related: Couple ‘fined £100 by their hotel’ for leaving a bad review on TripAdvisor

More: These are some of the things TripAdvisor is cooking up in its new Dublin office