The practice of putting up fake testimonials is called astroturfing - to give a statement of credibility from an independent source - but "substantiation notices" are now being issued.
News Limited can reveal that last week in New South Wales, Fair Trading sought official explanations from a hair regrowth business and tanning salon, as well as a furniture removalist and kitchen designer. They were given three weeks to respond.
It's believed to be the first-time substantiation notices - which can lead to penalties of up to $16,500 - have been issued.
Sounds like great news, although without an admission i doubt any retailer will receive a fine.
It shouldn't be too hard for Fair Trading to get the evidence (or lack of evidence) it needs. All these testimonials come from customers, so the business will be asked to produce the letters it received. If it can't/won't i.e. "We don't keep these type of letters", Fair Trading will no doubt require the business to provide the relevant customer's details so that it can contact the customer to confirm that he/she provided the relevant testimonial. The legislation may in fact place the onus on the business to keep such letters, and if the letter can't be produced, a fine may then issue.