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by Amy Roberts on Aug 15, 2025 4:19:10 PM
👉 Why fake reviews become a full-blown legal issue
👉 Four smart moves to keep safe (and foster trust)
Put simply: fake reviews aren’t just misleading, they're illegal, and they're now on the CMA’s hit list. Car dealerships found to host or encourage deceitful or undisclosed incentivised reviews could face huge fines and damage their reputation in the process. Here’s what you need to know and do about it.
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Why Fake Reviews Became A Full-Blown Legal Issue
Under the new Digital Markets, Competition and Consumers Act (DMCCA), fake reviews are explicitly banned, as is encouraging them or hiding paid endorsements. Starting January 2025, the Competition and Markets Authority (CMA) gained direct enforcement powers, there is no need to go through the courts.
- Fines of up to 10% of global turnover, or £300,000, are now on the table. Individuals could even face director disqualification in serious cases.
- A three-month grace period ended in July 2025, the CMA is now actively checking websites and issuing warning letters to those it believes are at risk.
More than half of the businesses reviewed across sectors still lack proper fake-review policies or clear disclosure practices.
Even big platforms like Google and Amazon are under pressure. Google agreed to start labelling businesses benefiting from fake reviews, while Amazon is committing to stricter detection.
Real Risks For Car Dealers
If you’re hosting reviews on your site, or relying on third-party platforms for star ratings, you’re considered a publisher, and that carries responsibility under the law. That means:
- Posting any fake or cherry-picked reviews? You're liable.
- Allowing undisclosed incentives for positive reviews? Also, illegal.
- No policy or a confusing one? That’s non-compliant too.
The CMA expects dealerships to take reasonable and proportionate steps to prevent inappropriate reviews. This includes having accessible policies, conducting risk assessments, and immediately removing suspicious content.
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Four Smart Moves To Keep Safe (And Foster Trust)
|
Step |
What to Do |
Why It Matters |
|
1. Publish a fake-review policy |
Place a clear statement on your site: “We do not accept fake reviews, and all incentivised feedback is labelled.” |
Shows you’re compliant and transparent. |
|
2. Vet your platforms |
Use review services that verify purchasers and label incentivised content. |
Most of your reviews won't get pulled as “fake.” |
|
3. Monitor regularly |
Check reviews weekly, flag suspicious content, and remove harmful posts without delay. |
Keeps your site clean and compliant. |
|
4. Train your team |
Make sure everyone, from marketing to sales, understands the rules around postings and moderation. |
Avoids unintentional non-compliance and reputational risks. |
Final Thought
Fake reviews are more than embarrassing; they’re a serious risk under new laws. The CMA has made clear that compliance is non-negotiable, and trust will be the new differentiator.
Need help updating your review strategy or policies? Marsh Finance offers a free website compliance review for partners, just reach out, and let’s make sure your online reputation is both stellar and lawful.
Related Reads from Marsh Finance
- Is Your Website Consumer Duty Compliant? - Align your site with FCA expectations.
- Dealers Urged to Update Websites Ahead of New Digital Compliance Rules - Covering DMCCA pricing & messaging updates.