Need a quick reminder of what the DMCCA is and what's changed? This is it. We quickly summarise the issues and point to more detailed articles on each topic.
What is the DMCCA?
- The Digital Markets, Competition and Consumers Act 2024 (DMCCA) updates consumer laws including those relating to unfair commercial practices. It has been described as a "watershed moment" by Sarah Cardell, the Chief Executive of the Competition and Markets Authority (CMA), the regulator.
- The DMCCA revokes the Consumer Protection from Unfair Trading Regulations 2008 (the CPUTRs or CPRs) and replaces them with similar (but enhanced) provisions. These enhanced provisions relate to fake and misleading consumer reviews, drip pricing and subscription contracts.
- The new provisions (and wider obligations under the DMCCA) should not be ignored, not least because the Act also gives the CMA new powers to directly enforce the unfair commercial practices regime (including the power to issue fines for breaches of up to £300k or 10% of an offending businesses global turnover, whichever is higher).
- Given the considerable potential consequences of getting things wrong, all businesses should be checking their commercial practices (including their online choice architecture) for compliance. Some will also need to consider their approach to consumer reviews, how pricing information is displayed and their subscription contract models.
When does this all happen?
The new consumer rules under the DMCCA apply from 6 April 2025, although the new rules on subscription contracts do not apply until spring 2026 and the CMA has recently said that it will re-consult on some aspects of the drip pricing regime in the summer (more here).
What are the key changes?
- Always unfair practices. As with the CPUTRs, the DMCCA contains a list of commercial practices that are in all circumstances considered unfair. With one or two exceptions, the DMCCA list is substantially similar to what went before. We remind readers what this list includes and cover the key changes in our article here.
- Consumer reviews. One notable addition to the list of commercial practices that are in all circumstances considered unfair is fake and misleading consumer reviews. A wide variety of businesses, including those who publish consumer reviews (even if just star ratings or thumbs up/down on their own products/services) will need to consider whether they are compliant. Many will need new policies and to undertake a risk assessment. Read more in our article here.
- Pricing. The provisions about disclosure of pricing information in an invitation to purchase have been amended to reflect concerns about drip pricing. One result is that the "total price" of a product must be included in every invitation to purchase. This total price must include all mandatory charges (such as admin/booking/service fees, taxes and unavoidable delivery charges). Many businesses will need to alter the way they approach the calculation and display of pricing information as a result. For more on the requirements – including what the CMA said recently on a second consultation – see our article here.
- Subscription contracts. There are new requirements for subscription contracts including around the supply of re-contract information, reminder notices and cancellation. These provisions do not come into force until spring 2026. For more, see our article here.
- Enforcement. The CMA will now have power to investigate and determine whether there has been a breach of the DMCCA (and various other pieces of legislation) and – where there has - to impose significant fines and other sanctions, without the need to go to court. The CMA's new powers are covered in our guest article by Jason Freeman, Director, CMA here. The CMA's likely enforcement priorities are covered in our article here.
-
Everything else. The DMCCA introduces a suite of other changes to the unfair commercial practices regime, some minor, some less so. These include (a) the abolishment of the 'transaction decision' test for material omissions of information from an invitation to purchase, (b) changes to various definitions (including of "commercial practice", "transaction decision" and "vulnerability"), (c) changes to what information the average consumer is deemed to know and (d) the omission of various lists contained in the CPUTRs. These are considered in our article here.
What does this mean for you?
This is a good opportunity for all businesses to check that they comply with the unfair commercial practices provisions in the DMCCA, including the new provisions around fake reviews, drip pricing and subscription contracts. Getting it right will now be even more important given the CMA's new powers of direct enforcement.
