Mortgage brokers risking £300,000 fine under new fake review laws

UK mortgage brokers are being warned they could face fines of up to 10% of annual turnover under laws banning fake and misleading online reviews, with many potentially already in breach.

The warning from TruthEngine, which specialises in the detection and prevention of fake online reviews, comes as businesses are now expected to comply with the Digital Markets, Competition and Consumers Act 2024 (DMCCA), which makes it explicitly illegal for companies to manipulate online reviews.

While the rules officially came into force just under a year ago, on 6th April 2025, many businesses are unaware of the full scope of the legislation, leaving them exposed to substantial fines.

Under the rules, businesses, their staff or agents, must not post or commission fake positive reviews, suppress or remove genuine negative reviews, or present reviews in a misleading or selective way.

Crucially, simply improving review practices going forward may not be enough - companies could still face enforcement action if historic fake or misleading reviews remain live and unaddressed.

Businesses are also expected to take proactive, reasonable steps to monitor and prevent fake reviews, and cannot simply rely on third-party platforms such as Trustpilot or Google to manage the issue on their behalf.

This new law is enforced by the Competition and Markets Authority (CMA), which now has the power to issue direct fines without going through the courts. Businesses found in breach could face penalties of up to 10% of annual turnover or £300,000, whichever is greater.

TruthEngine analysis reveals that over 50% of online reviews may now be fake or misleading, highlighting the scale of the challenge facing regulators - a problem that is only set to intensify with the rise of AI.

Common practices that could now be illegal include: only asking satisfied customers to leave reviews, filtering or hiding negative feedback, offering incentives for reviews with clear disclosure, and selectively displaying testimonials to present a biased picture.

Daniel Mohacek, CEO of TruthEngine, commented: “The law is now in force, but awareness is still lagging behind. Many businesses don’t realise they’re already expected to be compliant today, not at some point in the future.

“And this isn’t just about changing behaviour going forward. Historic fake or misleading reviews that are still live can still create a risk for businesses today.

“It also goes beyond fake reviews themselves. Practices like filtering out negative feedback, selectively showcasing reviews, or offering incentives for reviews without clear disclosure can all create a misleading picture - and are now against the rules.

“Ultimately, responsibility sits with the business. You can’t pass the buck to platforms like Trustpilot or Google - businesses need to take ownership of the reviews attached to their brand.

“For many companies, reviews are a key driver of growth. But under these rules, they also come with real responsibility. We’re seeing more businesses come to us to understand where they stand, particularly when it comes to historic reviews. Those acting early are using this as a chance to build trust, not just manage risk.”