The first consumer protection provisions of the Digital Markets, Competition and Consumers Act 2024 (DMCC Act) came into force earlier this year.
This marks one of the most significant reforms to UK consumer law in over a decade and is already being felt by businesses across the UK.
The introduction of the new rules did not come with much fanfare, which is why any business dealing with consumers should look closely at how its goods and services are marketed: the Act brings stronger enforcement and tougher penalties for breaches.
Key changes under the DMCC
There are a number of important changes within the DMCC that consumer-facing businesses should now be abiding by:
- Direct enforcement powers for the CMA: The Competition and Markets Authority (CMA) can now investigate and determine breaches without court proceedings and impose fines of up to the higher of £300,000 or 10% of global turnover. Most cases will be handled through the CMA’s civil/administrative route; some consumer offences remain criminal and can still be prosecuted under existing legislation.
- Civil and criminal routes: Enforcement is primarily civil/administrative, but certain offences under the consumer protection regime remain criminal and may lead to prosecution.
- Banned/unfair practices: Certain practices are now clearly unlawful or will be treated as unfair, including commissioning or facilitating fake reviews and presenting prices that exclude unavoidable fees (often called “drip pricing”).
- Contracts and subscriptions: The DMCC introduces a new subscription contracts framework to improve clarity on pre-contract information, renewal/cancellation, reminders and transparency. Much of this regime requires secondary legislation and guidance and is not yet fully in force for most businesses.
- Enhanced Consumer Measures (ECMs): The CMA (and courts) can require businesses to provide redress, take compliance steps, or make changes that improve consumer choice.
- Online interface powers: The CMA can issue Online Interface Notices and, where appropriate, seek court Online Interface Orders requiring traders and, in some cases, relevant intermediaries (e.g., domain registries/hosts/search services) to remove or amend unlawful online content.
The CMA has indicated it will prioritise tackling the most harmful practises in its first year of using these powers. Likely areas of focus include:
- Hidden fees revealed late in the buying process
- Misleading or false information
- Aggressive or manipulative sales practices (especially targeting vulnerable consumers)
- Unfair or unbalanced contract terms
- Areas where the CMA has already acted, such as drip pricing and fake reviews
Why this matters for your business
Under the DMCC, fines are swifter, far larger and reputational damage can be significant.
Businesses should start reviewing their practices immediately, including:
- Contracts: Ensure terms are clear, balanced and compliant.
- Marketing and pricing: Check all promotions, reviews and pricing displays (including fees) against the new rules.
- Robust procedures: Introduce compliance checks for sales and marketing teams.
- Learning and development: Equip staff in customer-facing, marketing and compliance roles to understand the new regime.
If you would like advice on reviewing your contracts, policies or compliance systems in light of the DMCC, please contact the commercial law specialists at Palmers Solicitors.