The Digital Markets, Competition and Consumers Act (DMCC) received royal assent in May 2024 and effectively replaced the Consumer Protection from Unfair Trading Regulations 2008. The Bill covers many different aspects yet the key motivation in designing this Bill was to strengthen the enforcement of consumer protection law.
For some time now, the Competition and Markets Authority (CMA) has relied upon voluntary adherence to the guidelines it sets, since they have no power to impose fines, even after having secured an order for compliance. However, the DMCC extends the CMA’s authority, allowing them to make decisions about whether or not consumer protection laws have been broken and what action to take, including imposing fines.
In real-world practice, such increased powers may make it easier for the CMA to investigate the huge post-queuing ticket price inflation that Oasis fans were recently subject to by Ticketmaster. Furthermore, if the ticketing platform is found to have used ‘dynamic pricing’ in a way that does not comply with regulations, then they will now have the ability to issue fines.
There are many parts of the new Bill that are likely to be relevant only to very large organisations. So, for the purposes of this guide, we’ll focus on any new rules or legislation within this Bill that SMEs should be aware of.
A Clampdown on Unfair Practices
The DMCC reinstates many of the rules upheld by the Consumer Protection from Unfair Trading Regulations 2008. However, there are some updates. Notably, the following -
Fake Reviews
The Digital Markets, Competition and Consumers (DMCC) Bill introduces a new prohibition on fake reviews. This covers not only submitting or commissioning fake reviews but also publishing them without taking reasonable and proportionate measures to prevent their appearance. This requirement is stricter than current EU regulations, which only mandate verifying the origin of reviews if the seller claims they come from genuine customers. The government, alongside the Competition and Markets Authority (CMA), plans to issue draft guidance to help businesses understand their responsibilities, especially in regard to what constitutes "reasonable and proportionate" actions.
Drip Pricing and Hidden Fees
The DMCC strengthens existing rules around the omission of key information in advertisements or product listings to tackle the issue of "drip pricing." This practice occurs when consumers are presented with an initial price, only to see additional, unavoidable fees added later in the transaction. Under the new regulations, sellers must clearly state the total price upfront, including any fees, taxes, and charges, as well as any mandatory variable costs and how they are calculated.
Subscription Terms
The DMCC introduces a new framework for subscription contracts, which are agreements that automatically renew for a fixed or indefinite period, obligating consumers to continue payments until they cancel. To stay compliant with these new regulations, businesses must provide clear pre-contract information, ensuring consumers understand key aspects of the subscription, such as price changes, cancellation procedures, and notice periods. Additionally, consumers are granted a 14-day cooling-off period, during which they can cancel the subscription and receive a refund without penalty.
The regime also requires businesses to send reminders before renewals or the end of free trials or discounted periods, helping consumers stay informed about their options. Furthermore, termination procedures must be straightforward, allowing consumers to end their contracts with a clear declaration of intent. Given the significant obligations on businesses, the government has delayed the implementation of these rules until spring 2026 or later.
What Might The Digital Markets, Competition and Consumers Bill Mean For You?
There are some policy changes and new rules in the DMCC, as outlined above, that you should know about, especially if you are selling to the general public. However, the overriding change is the increased powers to the CMA which enables greater enforcement of the regulations laid out in this Bill. For example, the CMA can now impose a maximum penalty of 10% of the business's global annual turnover or £300,000 (whichever is higher) for a breach of consumer law. Therefore, businesses are advised to familiarise themselves with this Bill and ensure they are compliant.
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Website legal audits/advice on website updates required to ensure legal compliance.
Website terms and conditions.
Privacy Policy and required customer notifications on your site where personal data is collected.
Cookie Policy and Cookie pop-up notice requirements.
Website information requirements.
Sale of online goods/services terms and conditions.
Copyright legends and advice on content protection.
Online Membership - legal advice and required documentation.
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*Please be aware that this guide does not outline every change, update or new regulation introduced in this Bill, rather we are just highlighting a few key areas. Please read the Bill to be fully informed.
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