Estate agents could face fines of up to 10% of turnover or £300,000, whichever is greater, under new legislation that bans fake and misleading online reviews, according to review verification platform TruthEngine.
The Digital Markets, Competition and Consumers Act 2024, which came into force on 6 April 2025, prohibits a range of practices including fake or incentivised reviews that are not clearly disclosed, as well as the misleading presentation of customer feedback.
Scope of new regulations
The legislation places responsibility on businesses to oversee review activity linked to their brand, with enforcement action possible even for historic content. Common industry practices such as filtering out negative feedback or selectively showcasing testimonials are now prohibited under the new rules.
Daniel Mohacek, Chief Executive of TruthEngine, told the Financial Times that awareness of the legislation remains low across the sector. “The law is now in force, but awareness is still lagging behind. Many businesses don’t realise they’re expected to be compliant today,” he said.
Mohacek added that the regulations extend 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.”
Industry implications
The new rules arrive as regulation continues to reshape the property sector, with businesses unable to delegate responsibility to third-party platforms. “Ultimately, responsibility sits with the business. You can’t pass the buck to platforms like Trustpilot or Google,” Mohacek said.
TruthEngine estimates that more than 50% of online reviews could be fake or misleading, suggesting widespread non-compliance across industries. Similar to recent enforcement action in other areas of property regulation, the penalties for breaching the new review rules represent a significant financial risk for estate agencies.
The legislation applies to all businesses operating in the UK, with enforcement powers granted to the Competition and Markets Authority. Businesses are required to ensure compliance with both new and existing online reviews displayed on their websites and third-party platforms.
