Digital Markets, Competition and Consumers Act

The Digital Markets, Competition and Consumers Act (DMCCA) has now officially been passed into law by Parliament.

DMCCA will significantly enhance consumers protection rights and change regulation in digital markets. It will require businesses to:

1. provide specific information to consumers before they enter into a contract which will set out in specific terms in a clear manner including a specific duty in relation to the need obtaining express acknowledgement from consumers that subscription contracts impose an obligation to make payment via e.g. a tix box on screen the absence of which will invalidate the agreement;
2. send specific reminder notices relating to the end of free or discounted trials;
3. provide straightforward means for consumers to exit subscription contracts; and
4. offer consumers a penalty free right to cancel during an initial cooling off period.

It will also add ‘fake reviews’ to the list of unfair commercial practices and ban hidden unavoidable fees for consumers (ie ‘drip pricing’) by making it a requirement for mandatory fees to be included in the headline piece.

The CMA held consultation in the summer on its direct consumer enforcement guidance and rules. Enforcement for the consumer protection provisions will commence in April 2025.