About the New Act
Fake reviews are now a Criminal Offence
In the United Kingdom, publishing fake, AI-generated, or incentivised consumer reviews is a criminal offence under the Digital Markets, Competition and Consumers Act 2024 (DMCC Act), which came into force on April 6, 2025. The Act restates and expands certain provisions, such as the Consumer Protection from Unfair Trading Regulations 2008, which target unfair commercial practices. The CMA now has increased powers to tackle practices like fake consumer reviews which are directly targeted by the new legislation. The DMCC Act bans fake reviews and requires businesses to take reasonable steps to prevent and remove misleading or incentivised reviews.
The Offences
The DMCC Act establishes several specific offences regarding fake reviews. Submission, commission, or publication of fake reviews as a "banned practice," meaning it is automatically considered an unfair commercial practice and illegal. This change addresses growing concerns about the integrity of online marketplaces and review platforms, where manipulated feedback has the potential to distort consumer choice and harm competition.
Commissioning or submitting fake reviews
Creating or paying for fabricated reviews (including AI-generated ones) that do not represent a genuine experience.
Misleading publication
Publishing reviews in a way that conceals they are fake or incentivised, such as only displaying positive AI-generated reviews and deleting negative ones.
Failure to police
A positive obligation on businesses to take "reasonable and proportionate steps" to prevent and remove fake or misleading reviews.
Concealed incentives
Failing to clearly label reviews written in exchange for money, free products, or discounts.
Serious Penalties For Publishing Fake Reviews
The Competition and Markets Authority (CMA) has enhanced powers to directly enforce these rules without needing to go to court.
Financial Penalties: Companies creating fake misleading reviews can be fined up to 10% of their global annual turnover.
Individual Fines: Individuals involved in such practices (e.g., directors or managers) can be fined up to £300,000.
Criminal Sanctions: In severe cases, directors or companies can face criminal prosecution.
Reputational Damage: The CMA can publish "name and shame" reports of non- compliant businesses.
AI Specific Implications
The regulations explicitly target the use of artificial intelligence to generate fake reviews. The law requires reviews to be based on a "genuine experience". AI generated reviews that pretend to be from real customers are illegal.
These rules apply to both the company being reviewed and the platforms (e.g., Trustpilot, Google, social media) that host the reviews.
How The 2024 Act Will Be Enforced
Investigation: The CMA initiates an investigation when there are reasonable grounds to suspect an infringement of consumer law
Provisional Infringement Notice (PIN): If the investigation finds a potential breach, the CMA issues a PIN. This sets out the preliminary findings, proposed remedies, and potential penalties.
Representations & File Access: The business has the right to make representations, access the CMA's case file (subject to confidentiality), and, in some cases, request an oral hearing.
Final Infringement Notice (FIN): Following the review of representations, the CMA may issue a FIN, confirming the decision, penalties, and remedial obligations. Appeals: Businesses have the right to appeal the CMA's decisions to the courts.
The simple way to avoid the above is to comply with the law. However, this is complex legislation which needs professional assistance. At ILS Legal we work with clients to structure their reviews in line with the regulations so that all of their customer experiences can be recorded with integrity.