Are you a consumer-facing business?

If so then you need to start preparing for the Markets, Competition and Consumers Act 2024 (DMCCA). The DMCC aims to increase competition in digital markets and strengthen consumer protection laws by addressing unfair practices.

Most of the consumer protection elements of the DMCCA including the unfair commercial practices regime are due to arrive on 6 April 2025 which includes bringing in new rules on consumer reviews and drip pricing.

What powers will the CMA have?

• The Competition Market Authority (CMA) will have new direct enforcement powers (including the ability to impose fines) from April 2025 which will act as a strong deterrent.
• They will be able to fine businesses up to 10% of global turnover (or £300,000, if higher) as well as impose consumer redress measures for consumer law breaches.
• The CMA will not have to go through the court process to exercise their rights, however full merits-based appeals will still be possible.
• They can now directly and unilaterally impose a penalty of up to 1% of global turnover on companies that fail to provide documents requested without reasonable excuse (and 5% of global daily turnover for continuing breaches).

What are some examples of the provisions that are coming into force?

• Ban on fake and misleading reviews;
• Additional controls on drip pricing (where a low “headline” price is offered but then mandatory charges are introduced throughout the booking process).

What can I do?

• Run an organisation-wide consumer compliance check, for example focusing on areas aligned with the CMA’s existing enforcement priorities such as dark patterns (including misleading urgency and price reduction claims) and greenwashing.
• Consider what checks would be “reasonable and proportionate” in the context of your business.
• Be upfront with your prices, and make sure all mandatory costs are displayed from the start.
• Be transparent.

What about the DMCC subscription contract regime?

• This is not scheduled to come into force until April 2026.
• The DMCCA introduces a new regime to try and avoid “subscription traps” (such as customers unwittingly signing up to subscriptions when they think they are making a single purchase, and being caught in auto-renew contracts which have onerous exit terms). This includes additional information requirements and cooling-off periods.
• In particular, consideration will need to be given to the treatment of consumers who cancel a contract for the supply of digital content.

If you need support with the changes to the Digital Markets, Competition and Consumers Act, we’re here to help, contact Caprice Coulson.