10 September 2025

3 min read

CMA updates guidance on endorsements and fake consumer reviews

Written by Ruth O’Gara

The Competition and Markets Authority (CMA) recently published two sets of updated guidance for social media platforms and content creators, as well as brands and agencies that use them on consumer reviews and paid endorsements in line with the Digital Markets, Competition and Consumers Act 2024 (DMCC Act).

The guidance aims to align with the new statutory obligations set out in paragraph 13 of Schedule 20 of the DMCC Act, which prohibits the unfair commercial practices of fake reviews and concealed incentivised content.

Guidance for Social Media Platforms

Published on 28 August 2025, this guidance sets out 6 key compliance principles for social media platforms to implement in line with the requirements of consumer protection law and to reduce the risk of future enforcement action.

These principles can be summarised as follows:

  1. Inform your users that incentivised endorsements must be clearly identified as advertising and clearly distinguishable from other content, and that fake reviews are not allowed;
  2. Provide content creators with tools to easily and effectively label content as advertising;
  3. Take appropriate and proportionate steps and use technology to prevent hidden advertising and fake reviews from appearing on your site;
  4. Make it simple for users to report suspected hidden advertising and fake reviews easily and effectively;
  5. Facilitate legal compliance by brands; and
  6. Enforce your terms and conditions and take appropriate action when violation occurs.

These principles underpin the importance of social media’s role in facilitating legal compliance by users, brands and agencies, and the necessity for more transparent and easily identifiable advertisements.

Guidance for Content Creators, Brands and Agencies

Published on 3 September 2025, this guidance aims to set out the responsibilities of content creators, as well as the brands and agencies that use them.

The guidance reiterates the importance of clearly labelling content as ‘ad’s, and how any form of incentive or reward to promote or endorse something it still considered payment. This includes money, commissions, discounts, leases or loans free of charge, and gifts of any products.

The guidance also sets out recommended steps to be taken by those working with content creators, and how they can try to ensure that content creators understand their legal obligations to distinctly disclose promotional content online.

These recommended steps can be summarised as follows:

  • any free gifts should include instructions as to how content in relation to those gifts should be posted;
  • brand owners should have policies in place setting out the brand rules on content that content creators should follow;
  • brand owners should check content that refers to their brand or business to ensure it is properly identified as advertising;
  • intermediaries working with these content creators should be made aware of these actions; and
  • if something isn’t right, it shouldn’t be ignored.

This updated guidance will help those brands and content creators understand the importance of transparency in advertising online, and the ramifications under consumer protection law for any non-compliance.

If you would like any further information or advice on these issues, please contact Ruth O'Gara or another member of our Commercial team.

*This information is for guidance purposes only and does not constitute, nor should be regarded, as a substitute for taking legal advice that is tailored to your circumstances.

About the author

Ruth O’Gara

Associate

Ruth O'Gara is an Associate within the Commercial team at Carson McDowell. She advises on a range of commercial matters, including general commercial contracts, technology and innovation, intellectual property and data protection.