A curb on unfair practices – enhanced consumer protection rights and enforcement powers under the DMCCA

竞争法 | 18/06/2024

We are pleased to share with you our briefing on the changes to the consumer protection rules and wider enforcement regime introduced by the Digital Markets, Competition and Consumer Act ("DMCCA"), which received Royal Assent on 24 May 2024.

Whilst the DMCCA has a clear focus on digital markets, the consumer protection rules contained in this new legislation and elsewhere remain applicable to all sectors of the UK economy. The CMA – which has long served as the UK's consumer protection watchdog – will continue to share jurisdiction with the courts when it comes to enforcement. However, the CMA will have significantly expanded powers to take action against companies or individuals which have been found to have infringed the UK's consumer protection regime.

Readers should be aware of the following changes in particular:

  • The DMCCA introduces wide-ranging new consumer protection rules aimed at protecting consumers making online purchases and which are otherwise active in digital marketplaces. These include: (i) prohibitions against the use of fake reviews; (ii) banning the use of "drip pricing"; (iii) more stringent information and cancellation rights vis-à-vis subscription contracts; and (iv) enhanced rules around consumer savings schemes.
  • The CMA will now have the power to fine a company up to 10% of its annual group worldwide turnover for infringements of consumer protection laws. This is consistent with the CMA's existing fining powers for infringements of the competition law prohibitions (i.e., the prohibition on anti-competitive agreements and the prohibition on the abuse of a dominant position).
  • More broadly, the CMA has enhanced enforcement powers to sanction companies and individuals it is investigating in relation to potential or alleged consumer protection infringements. For instance, the CMA will have the ability to issue fines of up to 1% of annual global turnover (for companies) or £150,000 (for individuals) for any failure to co-operate with an ongoing investigation.

It will be very important for all firms which provide their products and/or services to consumers in the UK – not just digital firms – to take heed of the new, more stringent consumer protection rules introduced by the DMCCA. The majority of the DMCCA's provisions in this area are not due to enter into force until later in the year, with some not expected to become effective until spring next year. This will allow companies and/or individuals enough time to conduct a thorough review of their business practices and identify whether any areas thereof should be adjusted accordingly.

The CMA will be publishing detailed guidance in the coming months, which will also shed valuable light as to how these new rules will operate in practice.

Click here to read more.

分享文章

相关领域

关于作者

Adobestock 582823897
Competition

Drugmakers fined in Turkey over no-poach agreement and information sharing

了解更多
Adobestock 1404749075
Competition

Realising the benefits of competitive markets: strengthening the Competition Appeal Tribunal

了解更多
Adobestock 515666417
Dispute Resolution

Realising the benefits of competitive markets: strengthening the Competition Appeal Tribunal

了解更多
Carousel Images12
Financial Services Regulation

The FCA's proposed consumer redress scheme in relation to motor finance - the highlights….

了解更多