Enhancing and Integrating Compliance with the DMCC Act Regulation: Crucial Measures for Companies
The Digital Markets, Competition and Consumer Act (DMCCA) 2024, now in force as of 6th April 2025, introduces significant changes to consumer protection in the UK digital economy. The Act aims to tackle issues such as misleading reviews and hidden fees, while empowering the Competition and Markets Authority (CMA) with robust enforcement tools to safeguard consumers.
Under the DMCCA, fake or misleading reviews are now banned practices, applicable not only to companies posting or commissioning such reviews but also to third-party platforms that publish them. Such practices are automatically deemed unfair and illegal, with no need for a consumer to prove harm. The CMA has confirmed active monitoring of review platforms and has announced enforcement actions against breaches of these rules.
Drip pricing, where fees such as taxes, delivery charges, or service fees are hidden until late in the purchasing process, is also a banned practice. Businesses must now disclose all pricing elements early on in the checkout process to avoid misleading consumers. Transparency requirements extend to website terms and conditions, which must clearly disclose all additional charges upfront.
The DMCCA significantly strengthens the CMA's enforcement powers. The CMA can now enforce consumer laws directly without needing court approval first. They can issue infringement notices and online interface orders, and impose fines up to £300,000 or 10% of a company's annual turnover, whichever is higher. This marks a major shift toward stronger, faster enforcement intended to deter unfair commercial practices and ensure compliance.
The legislation also introduces a list of 32 banned unfair commercial practices, including fake reviews and drip pricing, which are treated as unfair "in any and all circumstances," meaning businesses cannot justify these practices under any condition.
The CMA's enforcement guidance emphasises the importance of an effective governance programme. A robust governance programme may potentially reduce penalties imposed if a breach occurs. Those who publish consumer reviews and/or consumer review information should conduct regular risk assessments on fake consumer reviews, concealed incentivized reviews, and consumer review information that is false or misleading.
Businesses should identify and notify relevant internal and external stakeholders and practices affected by the DMCC. They should establish systems to detect, investigate, and take action against fake consumer reviews, concealed incentivized reviews, and consumer review information. The "total price" of a product must now be set out prominently in all invitations to purchase.
Under the DMCC, businesses will need to have a published policy that prohibits fake reviews and sets out the business's approach to incentivized reviews and consumer review information. The submission, commissioning, and publishing of fake and misleading consumer reviews are now banned.
The DMCC Act 2024 is a new regime that businesses must comply with. The CMA now has the power to investigate and determine breaches of the rules and impose fines or other sanctions without the need to go to court. Implementing robust policies, processes, training, monitoring, recording, and other measures can help prevent non-compliance.
Businesses should review the consumer journey and assess the whole shopping process for non-compliance with the DMCC. The DMCC Act 2024 is aimed at regulating digital markets, focusing on consumer protection as well as competition. Compliance with the DMCCA is crucial for businesses to maintain consumer trust and avoid hefty penalties.
- Under the DMCCA, businesses are required to have a published policy that prohibits fake reviews and sets out their approach to incentivized reviews and consumer review information.
- The CMA has confirmed active monitoring of review platforms and has announced enforcement actions against breaches of the rules related to fake or misleading reviews.
- The Digital Markets, Competition and Consumer Act (DMCCA) 2024 has strengthened the CMA's enforcement powers, allowing them to enforce consumer laws directly and impose fines for non-compliance, with penalties reaching up to £300,000 or 10% of a company's annual turnover.
