A new law, the Digital Markets, Competition and Consumers Act 2024 (the DMCC Act), introduces important measures to stop misleading online practices, including fake reviews and hidden fees.

What’s changing?

From 6 April 2025, businesses must:

• Stop using fake reviews

  It is now illegal to write or pay for fake customer reviews, offer incentives for positive reviews, or post reviews that haven’t been properly checked to make sure they’re genuine; and

• Be upfront about all costs

  Businesses must clearly show the total cost of a product or service(including all unavoidable or mandatory fees like delivery, booking, or admin charges) at the start of the purchase process. This tackles “drip pricing”, where extra costs are only revealed at checkout.

• Consider who is a vulnerable person

  The legislation includes an expanded concept of vulnerability, by providing that a consumer may be vulnerable due to particular circumstances they are in, i.e. going through a divorce, losing a job or grieving.

These changes aim to make online shopping more transparent and provide additional protections for consumers.

Why does it matter?

The government introduced these rules following research showing that:

• Around 10% of online product reviews are likely to be fake[1].

• Fake reviews and hidden charges cost UK consumers an estimated £2.2 billion every year[2].

• Around 94% of consumers have been put off using a business after reading a negative online review (according to a study by Review Trackers[3]).

Fake reviews and hidden fees create unfair advantages and damage trust. The new law aims to support honest businesses, promote fair competition, and restore consumer confidence in digital markets.

The Competition and Markets Authority (CMA) has been given stronger powers under the DMCC Act. It can now:

• Investigate rule breaches without needing court approval; and

• Fine businesses up to 10% of global turnover or £300,000 — whichever is greater.

The concept of vulnerable persons also impacts how financial penalties are calculated, as the impact on vulnerable persons is one of the factors the CMA considers an ‘escalating factor’.

What should businesses do now?

Online businesses, especially in retail, travel, hospitality, and tech should:

• Review how they collect and manage customer reviews, ensuring they’re genuine and properly moderated.

• Clearly display all prices and fees upfront.

• Update compliance procedures and train staff to understand the new rules.

• Consider any interaction with vulnerable persons in the scope of their business, and what extra precautions or adjustments to existing practices need to be made to comply with this;

Failing to comply could result in large fines and serious damage to reputation.

If you need help understanding how the DMCC Act affects your business, our Commercial Team is here to support you.

[1] https://assets.publishing.service.gov.uk/media/6447c00c529eda000c3b03c5/fake-online-reviews-research.pdf

[2] https://www.gov.uk/government/news/fake-reviews-and-sneaky-hidden-fees-banned-once-and-for-all

[3] https://www.reviewtrackers.com/reports/online-reviews-survey/