Shaking things up in the Digital World

24 Sep

Shaking things up in the Digital World by boosting competition and consumer protections – read our update on the new Act and its implications here.

The Digital Markets, Competition and Consumers Act 2024 became law in May 2024, marking a key step in the UK’s post-Brexit transition. It largely replicates its predecessor, the Consumer Protection from Unfair Trading Regulations 2008, which implemented EU consumer law, but also introduces significant changes set to boost competition and consumer protections in the digital world. The rollout will happen in stages, with most of the new rules expected to kick in between December 2024 and April 2025.

Here are the key consumer protection changes:

  1. Power to the CMA: the Competition and Markets Authority (CMA) will have direct powers to enforce consumer protection laws. They will be able to slap fines of up to 10% of a business’s global turnover and award consumer compensation without going through the courts.
  1. No more fake reviews: businesses will be banned from submitting or commission fake reviews. They will also need to take reasonable steps to prevent fake reviews from being published.
  1. Goodbye drip pricing: businesses will be banned from advertising one price and then adding non-optional fees later. Instead, they must disclose the total price (including all mandatory and optional fees) upfront.
  1. More vulnerable customers: the definition of ‘vulnerable customer’ will include situational vulnerability (such as recent unemployment, divorce or mourning) when assessing the fairness of commercial practices.
  1. New rights for subscribers: businesses will need to provide clear pre-contract information, send renewal notices and offer cancellation rights at the end of trial periods and every 12 months for subscription contracts. If they don’t meet notice requirements, they will need to offer easy cancellation options. This change will come into force in 2026.

Given these important changes, especially the CMA’s new power to impose hefty fines, businesses should start reviewing their practices to ensure they comply with the new rules, identify any risks and make necessary adjustments.

For more information, please reach out to Simon Weinberg, our partner & head of Commercial & Technology at simon.weinberg@asserson.co.uk.