A Big Win For Consumers

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Get ready for a fairer, more transparent digital marketplace with the UK’s brand new Digital Markets, Competition and Consumers Act (DMCCA) coming into effect soon. Amongst other things, the DMCCA aims to be a game-changer for consumer protection, by putting more power back in the hands of consumers and making online shopping a smoother, safer experience.

Five key points:

  • Crackdown on unfair practices: the DMCCA introduces stricter regulations to combat unfair practices, such as hidden fees, misleading advertising and exploitative terms and conditions. 
  • Transparency and fairness are paramount: the DMCCA mandates greater transparency from digital platforms and businesses. Consumers will have access to more detailed information about products and services, helping them to make more informed choices.
  • No more fake reviews: the DMCCA tackles the issue of fake reviews head-on, making it harder for businesses to mislead consumers with made up recommendations.
  • Goodbye, subscription traps! Consumers will be protected against accidentally getting locked into expensive subscriptions. The DMCCA cracks down on hidden fees and unclear terms, requiring businesses to be upfront about costs and make it easier for consumers to cancel subscriptions.
  • Control of data: the DMCCA empowers consumers with greater control over their online data. Businesses will need to be clearer about how they use consumer information, giving their consumers more peace of mind and enhanced rights if things go wrong.

Enforcement with a bite:

The DMCCA comes with significant teeth when it comes to enforcement, granting the Competition and Markets Authority (CMA) more robust tools to investigate and take action against businesses that violate consumer rights.

Businesses found guilty of breaching consumer protection laws could face substantial fines. These penalties are designed to deter companies from engaging in unfair practices and to encourage a culture of fairness and transparency. The DMCCA gives the CMA the power to directly fine businesses that break the rules, with penalties reaching up to a whopping £300,000 or, if greater, 10% of global turnover – that’s a strong incentive to play fair!

The timeline:

The DMCCA recently received Royal Assent, in May 2024, and while the exact implementation timeline is being finalised, it’s expected that much of the DMCCA could come into force in autumn 2024. Businesses should act now to ensure they use this time wisely to adjust to the new regulations and ensure they are compliant. For consumers, the protections and benefits of the DMCCA are just around the corner.

Want to learn more? Get in touch now for a no obligation initial discussion regarding your specific situation.