The new UK Digital Markets, Competition and Consumers Act (DMCC) introduces numerous modifications to consumer laws in the UK. We explore the key changes, likely to come into force from Autumn 2024, below.
- Most notably, the Competition and Markets Authority (CMA) will have the power to impose fines for breaches of consumer protection laws of up to 10% of a company’s global turnover.
- The CMA will also have other powers to enforce consumer laws through infringement notices, directions to businesses and by awarding compensation for consumers.
- New protection of consumers relating to fake and misleading reviews – a ban on unfair commercial practices such as the submission of a fake review or incentivising someone to provide a fake review and publishing reviews without first taking steps to stop consumers from seeing fake reviews or to be otherwise influenced by such misleading reviews.
- Various new rules in relation to subscriptions will come into force too (though it seems not before Spring 2026):
- Specific information must be made available to the consumer before they enter into the subscription, i.e. that the contract will continue indefinitely or for a fixed term, whether future payments due by the consumer under the subscription will be more costly than the initial price and how the consumer can terminate the subscription.
- A 14 day cooling off period will be introduced, both at the outset of the contract and for subsequent renewals (where the subscription continues for more than 12 months).
- Businesses must send reminder notices before the subscription renews, and usually this will be every 6 months.
- Cancellation must be “straightforward” for the consumer.
- The DMCC will ban businesses from using “drip pricing” – this is where a business shows one price for a product or service before revealing additional hidden fees later on when the consumer has no choice but to pay them. Under the new rules, the total price must be clearly stated from the outset, including fees, taxes, charges etc, or, where this is not possible, clear information as to how the price will be calculated must be given.
- The inclusion of protection against a business omitting certain key information from an “invitation” to purchase, such as relating to price, delivery charges and cancellation rights.
- There will be a new prohibition on falsely stating a product or offer is only available for a “limited time”.
We would advise our clients who are selling goods or services to consumers to review and update any terms and conditions of sale in line with the new rules, as well as to review consumer-related practices.
Madeleine Rhodes Mrhodes@redfernlegal.com
