Home 5 General 5 New protection for consumers

New protection for consumers

4 June 2024

The Digital Markets, Competition and Consumers Act has become law after receiving Royal Assent. The Act paves the way to give consumers rights across the UK, with greater control and clarity over online purchases.

The Digital Markets, Competition and Consumers Act is now law, having received Royal Assent. This Act empowers UK consumers with more control and clarity over online purchases.

Businesses must now provide clear information to consumers before they sign a subscription contract. They must remind consumers when their free or low-cost trial nears its end and ensure easy contract exit.

The Act mandates the inclusion of unavoidable hidden fees in the initial cost or clear illustration at the purchasing journey’s start. This clarity helps consumers understand their spending.

The Act also equips the Competition and Markets Authority (CMA) with new tools to tackle digital market competition challenges. These tools enable the regulator to impose tailored ‘conduct requirements’ on powerful tech companies. If a company treats users unfairly, it must change its operations. These rules could empower consumers to choose their services freely and prevent companies from withholding vital decision-making information.

The Act empowers the regulator to direct a firm to change its behaviour to enhance competition. This could benefit smartphone users or businesses relying on cloud services.

The Act also enables the CMA to monitor road fuel prices closely and report any malpractice signs to the government.

Only a few of the most potent global technology companies will face these new rules. This will happen if an investigation deems them to hold ‘strategic market status’.

You may also like these

Here are some more articles that might interest you

Expert Advice

If you’d like more information on anything you’ve read, we’re here and happy to help