27th November 2024

The New Rules for the Digital Marketplace

The Digital Markets, Competition and Consumers Act (DMCCA) is a new law that aims to reshape the UK’s consumer protection landscape. But what does it mean for the average person?

At its core, the DMCCA is about preventing businesses from engaging in unfair commercial practices. These are tactics that mislead or pressure consumers, often leading to decisions they wouldn’t otherwise make.

 

The Banned Unfair Practices

The DMCCA doesn’t just define unfair practices; it explicitly bans 31 of them. These range from the obvious (pyramid schemes, false closing-down sales, fake reviews) to the more subtle (advertorials without clear disclosure, pressuring children to buy). The goal is to create a clear line in the sand for businesses.

 

The Average Consumer Test

Not every unfair practice fits neatly into a banned category. That’s where the “average consumer” test comes in. If a practice is likely to mislead or pressure a typical, reasonably informed person, it could be deemed unfair, even if it’s not on the banned list.

The DMCCA recognises that some groups are more susceptible to unfair tactics. Elderly individuals, those with disabilities, or people in stressful situations are considered “vulnerable consumers”. The law provides them with additional safeguards, ensuring businesses don’t exploit their vulnerabilities.

 

Online Marketplaces: A New Frontier

The DMCCA isn’t just for traditional brick-and-mortar stores. It extends to online platforms, including giants like Amazon and eBay. This means stricter rules for fake reviews, misleading information, and hidden charges in the digital marketplace.

Imagine a website that bombards you with pop-ups, making it nearly impossible to compare prices or find the information you need. That’s a dark pattern, and it’s now under scrutiny thanks to the DMCCA. Similarly, a company that hides important terms and conditions in tiny print could face consequences.

 

Your Rights: What to Do If You’re Misled

If you think you’ve been a victim of an unfair commercial practice, you have options. You can report the issue to the Competition and Markets Authority (CMA) or seek redress directly from the trader. The DMCCA empowers you to stand up for your rights.

The DMCCA equips regulators with a range of tools to enforce these rules. Businesses that break the law can face hefty fines, legal action, and even be forced to compensate consumers who’ve been harmed.

 


The Future of Consumer Protection

Projected to come into force in stages throughout 2025, the DMCCA is a significant step forward in consumer protection. It’s a complex law, but its core message is simple: businesses must play fair. By understanding your rights and the rules, you can shop with confidence and hold traders accountable.

If you require advice about consumer protection, our commercial team is readily available for consultation. For more information, email info@bussmurton.co.uk or call on 01892 510 222.

Richard McCulloch

Richard McCulloch
Solicitor