{"id":191685,"date":"2024-12-03T00:26:17","date_gmt":"2024-12-03T00:26:17","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=191685"},"modified":"2025-05-12T05:38:44","modified_gmt":"2025-05-12T04:38:44","slug":"dmcc-act","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-contracts\/dmcc-act\/","title":{"rendered":"The New Digital Markets, Competition and Consumer Act: Implications For Businesses"},"content":{"rendered":"\n<p>Initial changes under the <a href=\"https:\/\/bills.parliament.uk\/bills\/3453\"><em>Digital Markets, Competition and Consumers Act 2024 <\/em><\/a>(DMCC Act) came into force in January 2025, introducing significant updates to UK laws on digital markets, competition and consumer protection. Further sections of the DMCC Act will continue to roll out over the next year,&nbsp; affecting businesses across many industries, especially those involved in digital services. This article outlines the new Act, its implications and the anticipated timeline for its rollout.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Changes You Should Know About<\/h2>\n\n\n\n<p>Some key changes the Act introduces are:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Increased Powers for the CMA: <\/strong>The DMCC Act grants the Competition and Markets Authority (CMA) more authority to investigate and penalise businesses that breach consumer law. This includes new enforcement tools and stricter penalties for non-compliance.<\/li>\n\n\n\n<li><strong>Establishment of the Digital Markets Unit (DMU): <\/strong>The Act formalises the creation of the Digital Markets Unit within the CMA. This unit will oversee digital markets and enforce a new pro-competition regime, particularly targeting tech giants with substantial market power, known as firms with \u201cStrategic Market Status\u201d (SMS).<\/li>\n\n\n\n<li><strong>Crackdown on Fake Reviews: <\/strong>The Act introduces stronger <a href=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/faking-online-reviews\/\">measures against fake reviews<\/a>. Online platforms will be prohibited from commissioning these reviews and will be required to ensure that any reviews published are authentic.<\/li>\n\n\n\n<li><strong>Subscription Contracts Simplified: <\/strong>The DMCC Act makes it easier for consumers to cancel subscription contracts. Companies must notify customers before renewals and ensure that cancellation options are clear and straightforward.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Strategic Market Status (SMS)<\/h2>\n\n\n\n<p><strong>Effective: 1 January 2025<\/strong><\/p>\n\n\n\n<p>The DMCC Act introduces the concept of Strategic Market Status for tech companies with dominant positions in digital markets. These companies will face tailored codes of conduct and increased scrutiny to prevent market abuse and encourage competition. The goal is to ensure these powerful players treat consumers and businesses fairly.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2025\/01\/20021001\/Screenshot-2025-01-20-at-1.09.48-pm.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">New UK Digital and Consumer Law Changes Factsheet<\/div>\n            <div class=\"body-text\">\n                <p>This factsheet summarises the key changes under the Digital Markets, Competition and Consumers Act 2024, including new consumer protection laws, CMA powers, rules on fake reviews, and simplified subscription contracts. <\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2025\/01\/20020714\/New-UK-Digital-and-Consumer-Laws-Your-Business-Factsheet.pdf\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent 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Previously, the CMA could not impose penalties directly; courts were required to enforce any sanctions. Other government authorities have also been given enforcement powers under the Act.<\/p>\n\n\n\n<p>Currently, the Consumer Rights Act\u2019s <a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/unfair-contract-terms\/\">\u2018unfair contract terms\u2019<\/a> regime does not impose any financial penalties on businesses for including unfair terms in consumer contracts. The DMCC Act will protect consumers by making it a criminal offence to engage in &#8216;unfair commercial practices,&#8217; including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/legalvision.co.uk\/regulatory-compliance\/consequences-misleading-advertising\/\">misleading actions<\/a> or omissions;&nbsp;<\/li>\n\n\n\n<li>aggressive sales tactics; and&nbsp;<\/li>\n\n\n\n<li>failing to meet professional diligence standards.<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Companies and their directors or managers could face fines or up to two years in prison for serious violations, such as engaging in unfair commercial practices.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Financial Penalties for Businesses<\/h2>\n\n\n\n<p><strong>Effective: 6 April 2025<\/strong><\/p>\n\n\n\n<p>The DMCC Act empowers the CMA to impose penalties directly on businesses that breach consumer protection laws, including the DMCC Act. The fines can be significant, including the higher of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>10% of global annual turnover or \u00a3300,000 for consumer protection violations;&nbsp;<\/li>\n\n\n\n<li>5% of turnover or \u00a3150,000 for administrative breaches, such as breaching CMA undertakings or directions; or&nbsp;<\/li>\n\n\n\n<li>1% of turnover or \u00a330,000 for investigatory breaches, such as providing false or misleading information.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Subscription Contracts<\/h2>\n\n\n\n<p><strong>Expected to become effective: Spring 2026<\/strong><\/p>\n\n\n\n<p>While businesses must already provide clear terms for subscription contracts, the DMCC Act will introduce stricter regulations. Companies must make subscription terms, renewal conditions and cancellation options clearer to consumers.&nbsp;<\/p>\n\n\n\n<div  class=\"box box--icon box--star\">\n    <p>In particular, consumers will be given a 14-day window to cancel after a subscription automatically renews (in addition to their rights to cancel within 14 days of their subscription starting).<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Implementation Timeline<\/h2>\n\n\n\n<p>The DMCC Act is being rolled out in phases. The current timeline for this is as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Effective as at 1 January 2025: <\/strong>Part 1 (digital markets, with a focus on big tech, such as \u2018strategic market status\u2019 determination), Part 2 (competition law reforms), and Part 5 (miscellaneous measures).<\/li>\n\n\n\n<li><strong>Effective as at 6 April 2025: <\/strong>Part 3 (enforcement of consumer protection law), and Chapter 1 of Part 4 (Protection from unfair trading provisions).<\/li>\n\n\n\n<li><strong><strong>Expected in 2026: <\/strong><\/strong>Reforms to subscription contracts and alternative dispute resolution will be introduced.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>The <em>Digital Markets, Competition and Consumers Act 2024 <\/em>represents a significant shift in how the UK regulates digital markets and protects consumers. It aims to tackle the challenges posed by large tech companies and ensure that businesses act fairly in the digital economy while also promoting competition and innovation. As the new rules come into effect, businesses should review their practices to ensure compliance with the updated regulations.<\/p>\n\n\n\n<p>If you need help complying with the DMCC Act, our experienced <a href=\"https:\/\/legalvision.co.uk\/contract-lawyers-lp\/\">contract lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers who can answer your questions and draft and review your documents. Call us today at <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\/\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions&nbsp;<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1733185055845\"><strong class=\"schema-faq-question\"><strong>How will the DMCC Act affect my business?<\/strong><\/strong> <p class=\"schema-faq-answer\">The DMCC Act introduces stricter rules on digital markets, competition, and consumer protection. Key changes include more powers for the CMA to investigate and penalise businesses, especially in digital services. Businesses with market dominance may face increased scrutiny, and new requirements will apply to subscription contracts, consumer protections, and fake reviews. You will need to review your practices to ensure compliance.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1733185068634\"><strong class=\"schema-faq-question\"><strong>What are the penalties for non-compliance with the DMCC Act?<\/strong><\/strong> <p class=\"schema-faq-answer\">Penalties for breaches of the DMCC Act can be significant. Fines may reach up to 10% of global turnover or \u00a3300,000 for consumer protection violations. There are also penalties for administrative and investigatory breaches. Serious violations could lead to criminal charges, including fines or up to two years in prison for directors.<\/p> <\/div> <\/div>\n\n\n\n\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/191685\" \/>            <input value=\"https:\/\/legalvision.co.uk\/commercial-contracts\/dmcc-act\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"The New Digital Markets, Competition and Consumer Act: Implications For Businesses\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Initial changes under the Digital Markets, Competition and Consumers Act 2024 (DMCC Act) came into force in January 2025, introducing significant updates to UK laws on digital markets, competition and consumer protection. Further sections of the DMCC Act will continue to roll out over the next year,&nbsp; affecting businesses across many industries, especially those involved<a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/dmcc-act\/\">Continue reading <span class=\"sr-only\">&#8220;The New Digital Markets, Competition and Consumer Act: Implications For Businesses&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13203,"featured_media":3202,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[37],"tags":[20,1592,2318,2319],"class_list":["post-191685","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-contracts","tag-small-business","tag-consumer-contracts","tag-competition-laws","tag-contract-regulations"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast 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She specialises in commercial, corporate and privacy law, and enjoys working with clients to help them achieve a commercial outcome. Olivia graduated from the University of Technology Sydney with degrees in Law and Business. She has experience working in in-house legal teams at a national sporting body and an online fashion retailer prior to joining LegalVision in 2020.\u00a0","url":"https:\/\/legalvision.co.uk\/author\/olivia-orourkelegalvision-com-au\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/dmcc-act\/#faq-question-1733185055845","name":"How will the DMCC Act affect my business?","acceptedAnswer":{"@type":"Answer","text":"The DMCC Act introduces stricter rules on digital markets, competition, and consumer protection. Key changes include more powers for the CMA to investigate and penalise businesses, especially in digital services. Businesses with market dominance may face increased scrutiny, and new requirements will apply to subscription contracts, consumer protections, and fake reviews. You will need to review your practices to ensure compliance.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/dmcc-act\/#faq-question-1733185068634","name":"What are the penalties for non-compliance with the DMCC Act?","acceptedAnswer":{"@type":"Answer","text":"Penalties for breaches of the DMCC Act can be significant. Fines may reach up to 10% of global turnover or \u00a3300,000 for consumer protection violations. There are also penalties for administrative and investigatory breaches. Serious violations could lead to criminal charges, including fines or up to two years in prison for directors.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/191685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13203"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=191685"}],"version-history":[{"count":6,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/191685\/revisions"}],"predecessor-version":[{"id":193666,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/191685\/revisions\/193666"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/3202"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=191685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=191685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=191685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}