CMA Issues Updated Guidance for Social Media Platforms on Fake Reviews and Hidden Advertising
In late summer 2025, the UK Competition and Markets Authority (CMA) released updated guidance for social media platforms (SMPs) on how to comply with consumer protection laws relating to incentivised endorsements and fake reviews. The guidance builds on the CMA’s earlier work on fake reviews and sets out clear expectations for how platforms must prevent, detect, and address misleading content.
Failure to follow the guidance may expose SMPs to direct enforcement action, including fines of up to 10% of global turnover, mandatory directions on future conduct, revenue losses, and reputational damage.
The Six Key Principles for Social Media Platforms
To comply with consumer law, SMPs are expected to implement the following principles:
1. Educate platform users
Platforms must publish a clear and easily accessible policy explaining that hidden advertising and fake reviews are prohibited. Users should understand that paid or incentivised endorsements must be clearly identified as advertising.
2. Provide effective labelling tools
Content creators should be given simple and prominent tools to label sponsored or paid content clearly.
3. Proactively prevent misleading content
Platforms are expected to prevent, detect, and remove hidden advertising and fake reviews. This includes using technology and algorithms to identify problematic content and holding creators accountable.
4. Enable easy reporting
SMPs must provide reporting mechanisms that allow users and regulators to easily report suspected hidden advertising and fake reviews.
5. Support brand compliance
Platforms should provide brands with relevant policies and compliance guidance, and encourage them to monitor and ensure the legality of content published on the platform.
6. Enforce terms and conditions
Appropriate action must be taken against breaches, including removing content, applying sanctions (such as temporary restrictions), conducting regular compliance reviews, and maintaining proper records.
The CMA expects SMPs to take a proactive, risk-based approach and to continuously update their systems as technology and market practices evolve.
Regulatory Landscape
This guidance forms part of a wider regulatory framework issued by the CMA and other enforcement bodies, including specific guidance for content creators, brands, agencies, businesses whose products are reviewed, and online review platforms.
Under the Digital Markets, Competition and Consumers Act 2024, both the CMA and Trading Standards have extensive enforcement powers over SMPs, brands, agencies, and content creators.
The Advertising Standards Authority (ASA) separately enforces the Advertising Codes against brands and content creators. It has issued numerous rulings on hidden advertising and maintains a public list of non-compliant influencers.
What Social Media Platforms Should Do Now
SMPs should ensure that they:
- clearly publish policies on hidden advertising and fake reviews;
- provide practical compliance guidance with examples;
- deploy and update technology to identify problematic content;
- actively communicate with brands and creators regarding compliance and remediation;
- regularly test and refine enforcement systems and sanctions;
- collect and act on user and regulator reports; and
- apply sanctions where policies are breached.
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