The DMCC Act: A Guide For Car Dealers
Transparency is no longer optional, under the Digital Markets, Competition and Consumers Act (DMCC), it’s a legal requirement.
The Digital Markets, Competition and Consumers Act (DMCC) introduced stricter rules around how car dealers collect, manage and display customer reviews. For both franchised and independent dealers using third-party review platforms, the Act brings reviews firmly into the compliance spotlight.
This isn’t just about avoiding penalties. Done properly, transparent review practices can strengthen trust, protect reputation and create a genuine competitive advantage.
What Is the DMCC Act?
The DMCC Act strengthens the powers of regulators such as the Competition and Markets Authority (CMA) to tackle misleading commercial practices. A key area of focus is online consumer reviews, including how they are collected, moderated and presented to customers.
Under the Act, regulators can take action where reviews:
- Are fake or misleading
- Are selectively displayed to give a distorted impression
- Are incentivised without clear disclosure
- Have negative feedback unfairly suppressed
For car dealers, where reviews heavily influence purchasing decisions, this represents a significant shift in expectations.
How the DMCC Act Affects Dealer Reviews
For dealers using third-party review platforms, the DMCC Act makes several practices high risk:
- Cherry-picking customers to invite for reviews
- Filtering or suppressing negative feedback
- Highlighting only positive reviews without balance
- Incentivising reviews without transparency
In short, dealers must be able to demonstrate that reviews reflect a fair, accurate and representative picture of customer experience.
Transparency is no longer just best practice, it is a compliance requirement.
Why Negative Reviews Are Not a Problem
Contrary to popular belief, negative reviews are not inherently damaging. In fact, a small number of critical reviews can improve credibility.
Most consumers understand that perfection is unrealistic. What matters more is:
- How issues are acknowledged
- How dealers respond publicly
- Whether concerns are resolved professionally
A profile with nothing but five-star reviews can appear less trustworthy than one that shows balanced, authentic feedback and thoughtful responses.Handled correctly, negative reviews demonstrate accountability and care, both of which support long-term trust.
What Counts as a Misleading Review Under the DMCC?
A review may be considered misleading if it:
- Does not represent a genuine customer experience
- Has been influenced by incentives without disclosure
- Has been edited or removed unfairly
- Is presented in a way that misleads consumers
Dealers must be able to evidence how reviews are collected and how decisions about display or moderation are made.
How Third-Party Review Platforms Can Support DMCC Compliance
Many dealers choose to work with independent third-party review platforms to help reduce compliance risk and increase transparency.
Effective review platforms should:
- Use closed or verified systems to ensure authenticity
- Provide clear audit trails
- Display reviews fairly and clearly
- Avoid selective presentation of feedback
At JudgeService, our verified reviews process is built around these principles. Our closed system ensures reviews come from genuine customers, with full audit trails to support transparency. We will continue to update our widgets and carousels for clarity and provide guidance on best practice to help dealers remain compliant and competitive.
DMCC Compliance: More Than a Box-Ticking Exercise
Compliance with the DMCC Act should not be viewed as a burden. It is an opportunity to build credibility, demonstrate integrity and stand out in a crowded market. Dealers who embrace transparency are better positioned to earn trust, strengthen reputation and build long-term customer loyalty.
Download our practical DMCC guide to understand how dealer reviews can remain compliant, transparent and trustworthy.
