The UK’s DMCCA: A New Era for Digital and Consumer Law
The DMCCA, which received Royal Assent in May 2024, is the UK’s most significant overhaul of consumer and digital market law in a generation. The Act introduces:
- Strategic Market Status (SMS): The Competition and Markets Authority (CMA) can now designate large digital firms as having “strategic market status,” subjecting them to special rules and oversight
- Sharper Enforcement Powers: The CMA has broad new abilities to investigate, enforce, and impose fines of up to 10% of global turnover—without going to court
- Unfair Commercial Practices: The DMCCA consolidates and updates rules on misleading actions, omissions, and aggressive practices. The CMA can now determine what’s “unfair” and issue guidance on compliance
- Drip Pricing Ban: From April 2025, it’s illegal to “drip” extra fees or charges at the end of a purchase journey. The total price—including all mandatory fees and taxes—must be shown upfront
- Subscription Contracts: New regime (from 2026) gives consumers a non-waivable right to cancel a subscription and obtain a refund within 14 days, plus clearer rules on renewals and cancellations
- Fake Reviews Crackdown: Platforms and sellers must take “reasonable and proportionate steps” to verify reviews are genuine, and swiftly remove fakes
Who is affected?
Any business selling goods or services to UK consumers—including online platforms, marketplaces, and subscription services—must comply.
The EU Consumer Rights Landscape: Empowering and Protecting Buyers
The EU continues to strengthen its consumer protection framework with new and updated directives:
-
Empowering Consumers Directive (2024/825):
- Requires sellers to provide clear, trustworthy information about environmental, social, and circular impacts of products and services
- Expands the list of misleading practices to include greenwashing and unreliable sustainability claims.
- Mandates honest warranties based on the entire product, not just components.
- Requires pre-purchase information on durability, repairability, and warranty terms.
- Consumer Rights Directive (CRD):
-
Harmonizes basic rights across the EU, including the
right to cancel online orders and receive transparent product
information before purchase
-
Harmonizes basic rights across the EU, including the
right to cancel online orders and receive transparent product
information before purchase
- Fake Reviews Ban:
- Selling, buying, or submitting fake reviews to promote products is explicitly prohibited across the EU
Who is affected?
All EU/EEA traders and non-EU companies selling to EU/EEA consumers. Each member state must implement these directives in national law by March 2026
UK vs. EU: Key Differences and What Sellers Must Do
Feature | UK (DMCCA) | EU (Directives) |
Drip Pricing | https://www.taylorwessing.com/en/insights-and-events/insights/2025/04/dmcca-drip-pricing | Already restricted under UCPD/CRD |
Subscription Rights | https://brodies.com/insights/commercial-contracts-and-outsourcing/are-you-ready-for-the-dmcc-act-and-reform-of-uk-consumer-protection-laws/ | 14-day right to cancel under CRD |
Fake Reviews | https://brodies.com/insights/commercial-contracts-and-outsourcing/are-you-ready-for-the-dmcc-act-and-reform-of-uk-consumer-protection-laws/ | Fake reviews banned, enforcement varies |
Green Claims | Not yet harmonized | Strict rules under Empowering Consumers |
Enforcement | https://brodies.com/insights/commercial-contracts-and-outsourcing/are-you-ready-for-the-dmcc-act-and-reform-of-uk-consumer-protection-laws/ | National authorities, fines vary |
What sellers must do:
- Review pricing practices: Ensure all mandatory fees are disclosed upfront.
- Audit review processes: Implement systems to verify and remove fake reviews.
- Update subscription terms: Prepare for new cancellation and renewal requirements.
- Enhance transparency: Disclose durability, repairability, and environmental claims honestly.
- Monitor both UK and EU guidance: Divergence is increasing, and dual compliance is essential for cross-border sellers.
The Bottom Line
The compliance landscape for UK and EU sellers is more demanding—and more harmonized—than ever. With powerful new enforcement tools, stricter rules on pricing and reviews, and a growing focus on sustainability and consumer empowerment, businesses must act now to update practices, train teams, and invest in compliance systems.
Stay proactive:
- Keep up with guidance from the CMA and EU authorities.
- Regularly review and update your consumer-facing policies and digital interfaces.
- Seek legal advice for complex or cross-border operations.
By embracing these changes, sellers can not only avoid penalties but also build trust and loyalty in the world’s most consumer-protective markets.
#ConsumerProtection #DMCCA #EUCompliance #DripPricing #FakeReviews #GreenClaims #Ecommerce
Sources: Squire Patton Boggs, Osborne Clarke, Taylor Wessing, Fieldfisher, Business Companion, Usetappr, Brodies