The Digital Markets, Competition and Consumers Act and Consumer Law
min read
Consumer law is evolving rapidly, and businesses need to keep pace. The Digital Markets, Competition and Consumers Act (DMCC), which passed through Parliament in the summer, represents one of the most significant updates to UK consumer protection in recent years. Its aim is clear: to strengthen consumer rights and ensure fairer practices in an increasingly digital marketplace.
Because these changes don’t just tweak existing rules, our new series on the DMCC Act will cover the new obligations and enforcement powers that could have a major impact on how businesses operate. From subscription models to pricing transparency and the authenticity of online reviews, the DMCC addresses areas where consumers have historically faced confusion or harm. Understanding these updates is essential for compliance and for maintaining trust with your customers.
What are the new changes to the DMCC Act?
The DMCC Act introduces a modernised framework for consumer protection, replacing the Consumer Protection from Unfair Trading Regulations with enhanced provisions. While the Act passed last summer, much of its consumer-focused legislation has only recently come into force, meaning businesses need to act now to ensure compliance.
Key Changes Under the DMCC
- Subscriptions: The Act formalises requirements around subscription contracts, ensuring consumers have clear information before signing up, reminders before auto-renewals, and straightforward cancellation processes.
- Fake Reviews: Businesses must not publish or commission fake reviews, nor manipulate review systems to mislead consumers. This is part of a broader crackdown on deceptive practices in digital markets.
- Drip Pricing: The CMA is targeting hidden fees and charges that only appear late in the purchasing process. Businesses must present total costs upfront to avoid misleading consumers.
Enhanced Enforcement Powers
One of the most significant shifts is in enforcement. The CMA now has the authority to act directly against breaches of consumer law without needing a court order. This includes:
- Investigating suspected infringements.
- Issuing infringement notices.
- Imposing substantial penalties:
- Up to 10% of global turnover or £300,000 (whichever is greater) for serious breaches.
- Daily penalties for non-compliance with undertakings or notices, up to 5% of daily turnover or £15,000 per day, with no aggregate cap.
These powers reflect the CMA’s commitment to tackling unfair practices swiftly and effectively.
Why This Matters
Industries such as gaming and digital services will recognise these changes as a formalisation of the CMA’s previous work on Online Choice Architecture. The Act codifies principles that were already under scrutiny, making compliance non-negotiable.
What’s Next?
In our upcoming video series, we’ll dive deeper into:
- Subscriptions – How to design fair and compliant subscription models.
- Fake Reviews – What constitutes a fake review and how to avoid penalties.
- Drip Pricing and Enforcement – Understanding pricing transparency and the CMA’s new enforcement toolkit.
Stay tuned for practical insights and actionable guidance to help your business navigate these changes confidently.
