Mortgage brokers are being warned that they could face fines of up to 10% of annual turnover or £300,000 under new rules targeting fake and misleading online reviews, following the enforcement of the Digital Markets, Competition and Consumers Act 2024.
The legislation makes it illegal for businesses to post fake reviews, suppress genuine negative feedback or present testimonials in a misleading way. Firms are also expected to take proactive steps to monitor review activity rather than relying solely on third-party platforms.
Industry commentary suggests that some businesses could already be exposed to risk if historic reviews and online practices have not been addressed. Regulators now have greater powers to take enforcement action and issue penalties directly in certain circumstances.
For mortgage brokers and other financial services firms, the changes highlight the importance of ensuring that online reviews, testimonials and reputation management practices are transparent, genuine and compliant.
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