Digital Markets, Competition and Consumers Act 2024- What Does Banning Fake Reviews Mean for Your Online Consumer Rights?
Holly Jones (Student)
In the digital age of buying and selling online at just a mere click of a button, consumers (those buying products) may feel lost in a sea of misinformation and misleading deals. It is easy to become influenced by what is posted online, explaining how amazing and revolutionary a simple product is, which persuades consumers to reach into their pockets yet again. However, how much of what we see online is false and those promoting a product may have undisclosed reasons for doing so. How are consumers protected in this mine field of over-consumption and consumerism?
The Digital Markets, Competition and Consumers Act, introduced in 2024, has provided stricter laws to be followed by those instigating such malpractices. The focus of this article will be on the banning of fake and concealed incentivised reviews, which was brought into force in April of 2025.
What are fake reviews?
When we consider reviews, you may be imagining a product posted online with a section underneath the product to post reviews. However, this new provision also includes a verbal opinion, which may have been recorded and posted on TikTok, for example, or graphic representation, such as a star rating of a product.
The term fake review itself is defined to be ‘a consumer review that purports to be, but is not, based on a person’s genuine experience’. It is not limited to a positive review, which might mislead consumers to purchase a product based on a false experience, but also negative reviews which might steer consumers away from a genuinely helpful product.
What are concealed incentivised reviews?
Concealed incentivised reviews are another type of review that have recently been banned. These type of reviews refer to those conducting the review failing to reveal a benefit they may have received in exchange for the review. This could be in the form of free products, a financial incentive or whatever experience they had for free, like staying in a hotel.
These types of reviews are becoming increasingly popular as online presences of ‘influencers’ allow individuals to earn significant amounts of money, often without leaving their bedroom or house. However, it is illegal for these people to fail to disclose they did not do this review purely based off a genuine enjoyment in the product, as they may receive money or commission from individuals who believe their positive, but not always honest, review.
Why does the banning of fake and concealed incentivised reviews matter?
The aim of these new provisions is to protect the consumer, which could be you! Both types of reviews have the propensity to be misleading and lead consumers to buy products they may not necessarily buy otherwise, due to being presented as something they may not be.
This is a big step for 21st century consumers who may use social media avidly, as it is typical to come across multiple reviews in a short time frame while scrolling, which either do not declare they have received an incentive for their positive review, negative reviews which are dishonest in nature, and reviews which may be entirely fake for clickbait or for other engagement purposes.
How will those breaking the law be prosecuted?
The governing body who aims to protect consumer rights is the Competition and Markets Authority (also known as the CMA) and can directly investigate and issue infringements without taking those liable to court first. They can issue different infringement notices, either when a breach is likely to happen, or if one has already occurred. They can also fine those liable or order businesses to provide compensation to consumers. If the offence is serious, the CMA can pursue criminal prosecution, which may include penalties, and even imprisonment. If businesses refuse to comply, they can suffer long-term reputational damage.
Consumers do not deserve to be deceived by those making money off their optimism, and therefore the law has taken a stance of intolerance on this sort of behaviour. The most recent provisions are only 6 months old, so their true effect is yet to be seen, but consumers have the comfort of knowing their rights are being protected more so than before.
Here at BULAC we can advise on general consumer issues. If you would like an appointment please call 01248 388411 or email bulac@bangor.ac.uk