Digital Markets, Competition and Consumers Act | A Consumer Reform Perspective

A new era – introduction of changes by the DMCCA 2024

The UK has a longstanding consumer law regime with its primary aim on protecting consumers and ensuring the products and services sold are in essence safe, fit for purpose and meet their sales description.

On 6 April 2025, changes were made to this regime through the Digital Markets, Competition and Consumers Act 2024 (DMCCA), with businesses offering goods and services to consumers directly affected.

Why have consumer rules been reformed?

In December 2023 the previous Conservative government acknowledged that since the enactment of the Consumer Rights Act 2015, there has been a growing change in consumer behaviour, which quickly escalated as a result of the pandemic when many of us signed up for subscription plans and resorted to ordering much more from online marketplaces in an effort to ‘stay at home’. These behaviours have reportedly continued as we embrace the convenience of online shopping.

Consequently, the scope of businesses now setting up online has steadily broadened. The government recognised that whilst helping the economy, this was harming consumer rights, with people getting locked into unwanted subscription plans and being misled on apparent ‘good’ offers. Whilst the DMCCA received Royal Assent on 22 May 2024, before the general election, the current Labour government has proceeded to support the DMCCA and implement the key secondary legislation.

The first wave of changes to consumer protection law came into force on 6 April 2025, with the second wave relating to subscription contracts expected Spring 2026 at the earliest.

What happened on 6 April 2025?

Update on the Unfair Trading Regulations

The DMCCA revokes and replaces the Consumer Protection from Unfair Trading Regulations 2008 (CPRs). The CPRs were introduced to provide a general prohibition on businesses from engaging in unfair commercial practices against consumers, particularly focussing on marketing and selling practices.  Whilst the DMCCA retains many of the original principles in the CPRs, it introduces key changes including:

• new banned commercial practices on fake reviews,
• omitting material information from invitations made to purchase goods or services including drip pricing, and
• expanding the concept of vulnerability, making a consumer’s circumstances – age, physical or mental health, life situations (including divorce, mourning or losing a job) – relevant when assessing unfair commercial practices.

The UK’s independent advertising regulator, the Advertising Standards Authority (ASA) has updated the CAP and BCAP codes to align with the unfair commercial practice provisions in the DMCCA. The ASA is advising businesses to refer to the provisions on unfair commercial practices in the DMCCA (Chapter 1 of Part 4 of the DMCCA ) when preparing marketing campaigns and adverts, and to seek legal advice to aid their understanding on the new DMCCA.

Drip pricing

This is one of two of the major new introductions by the DMCCA into the list of unfair commercial practices. Drip pricing is where only part of the price of the product or service is advertised and, as the consumer proceeds through the purchase process, the fees associated with the purchase are drip fed. The total amount payable is shown at the last available opportunity, with the consumer usually committed to the purchase.

In 2023, the UK government undertook research which revealed that 45% of online and mobile app providers used drip pricing as part of their purchase process, with drip pricing being more commonly found in the transport, entertainment and hospitality sectors. Drip pricing which is clearly unavoidable for the consumer is banned, with businesses required to ensure that any mandatory fees associated with ordering goods and services are provided to consumers upfront, to make it easier for consumers to compare goods and services. Optional fees will not be included.

A further consultation by the CMA is planned for summer 2025 including on fixed term periodic contracts, with finalised guidance in the autumn. Enforcement action on drip pricing will only be taken in the meantime where it clearly breaches rules in line with the April guidance.

Fake consumer reviews

The DMCCA introduces four new banned practices to control the use of fake reviews. These involve:

• a ban on submitting or commissioning fake reviews,
• publishing consumer reviews or review information in a misleading way,
• publishing consumer reviews without implementing appropriate procedures, and
• offering services in connection with any of the banned reviewed practices.

Any deletion of negative reviews, publishing only positive reviews, not clearly labelling incentivised reviews or presenting reviews of a different product or service than the one the consumer is considering, will be considered a fake review and thus a banned practice. Businesses which do not take ‘reasonable and proportionate steps’ to prevent fake reviews may be exposed to investigation by the CMA.

Enhanced powers of the CMA

The DMCCA introduces new direct enforcement powers for the Competition and Markets Authority (CMA) to take action against businesses it believes are acting in breach of consumer protection laws. Unlike currently where the CMA has to rely on the courts to take action, the CMA will be entitled to undertake its own investigations of breaches of consumer protection law and issue infringement notices, take-down orders and monetary penalties of up to 10% of a business’s global turnover.

On 14 March 2025, the CMA released guidance which sets out how the CMA will use its direct consumer enforcement powers including the enforcement process, how the CMA will handle complaints, and how it will prosecute traders for breaches of consumer protection law. The CMA’s chief executive, Sarah Cardell, has also recently confirmed that the CMA’s initial focus will be on very serious breaches, for example:

• aggressive sales practices that prey on vulnerable members of society,
• contractual terms which are obviously unbalanced and unfair, and
• providing information to consumers which is objectively false.

On 7 April 2025, the CMA has also published an approach document detailing the CMA’s enforcement priorities for the next 12 months which are:

• target businesses whose conduct is more harmful to consumers, and which amounts to clear infringements of the DMCCA,
• prioritise areas of essential spend to help people struggling due to the cost-of-living crisis, and
• engage with businesses and develop materials to help with compliance of the DMCCA.

The CMA has reassured businesses that it will initially focus on compliance rather than enforcement for the first three months.

Steps for businesses to consider

The DMCCA is set to revolutionise consumer protection laws and businesses are best being proactive rather than reactive to these changes.

1. Keeping up to date with the guidance being released by the CMA. We expect guidance will be handed down within the first few weeks after 6 April to help guide businesses with compliance.
2. Review your own policies and processes to ensure your commercial practices comply with the new requirements of the DMCCA. Particularly for businesses using online reviews, do you have policies in place to remove fake consumer reviews?
3. Review your terms and conditions to ensure that they are appropriate for consumers. Businesses engaging consumers with terms and conditions containing unfair terms to consumers (but which may be reasonable to B2B) may come under scrutiny. Reviewing terms and conditions to ensure these are suitable for consumers is key.
4. Undertake audits of your commercial practices, particularly with marketing and sales teams to ensure teams are following internal policies.
5. Review your order processes to ensure pricing is clear and does not risk being found to be a banned practice.

Our experienced team of commercial solicitors can support you if you would like to learn more about these significant changes to the consumer protection and enforcement landscape.