The UK’s Digital Markets, Competition and Consumers Act 2024 (DMCCA) is ushering in a new era for brands operating in the digital and consumer landscape.

With far-reaching changes to competition and consumer law, this legislation is designed to protect consumers, promote fair competition, and foster innovation.

But what does it actually mean for brands? Let’s explore the key considerations, Maven-style…….and please note the Case Study at the end…..

A New Playing Field for Brands

The DMCCA is all about levelling the playing field. It gives the Competition and Markets Authority (CMA) new powers to investigate, enforce, and penalise breaches of consumer law (without the lengthy court processes of the past). 

This means brands now operate in a landscape where compliance isn’t just encouraged-it’s enforced, and the risks of non-compliance can be huge.

Positives for Brands

• Trust and Confidence: With the CMA able to act swiftly against unfair practices, consumer trust in brands that play by the rules will rise. This increased confidence can translate to greater customer loyalty and willingness to try said brand’s new products/services.

• Fair Competition: The Act aims to ensure that no business can gain an unfair advantage by cutting corners. For brands committed to ethical practices, compliance will triumph those less scrupulous.

• Innovation Boost: By reducing anti-competitive behaviour, especially among major tech platforms, the DMCCA opens up space for challenger brands to innovate. As a result smaller brands and startups may find it easier to compete and get noticed in digital markets.

• Clearer Rules: The Act clarifies what constitutes unfair commercial practices, such as hidden fees, fake reviews, and misleading invitations to purchase. For brands, this provides more certainty about what’s expected.

Key Considerations for Brands

• Enhanced Enforcement and Fines: The CMA can now impose fines of up to £300,000 or 10% of annual turnover for serious breaches, with additional penalties for ongoing non-compliance. Brands must ensure their practices are watertight.

• Scrutiny of Digital Practices: The Act specifically targets digital markets, with new rules on online sales, apps, and digital content. Brands should review their digital customer journeys, ensuring transparency in pricing, terms, and  claims made in their marketing.

• Subscription and Drip Pricing: New rules around subscriptions (including clearer cancellation processes) and “drip pricing” (where fees are revealed late in the purchase journey) mean brands must rethink how they present offers and manage customer relationships.

• Fake Reviews and Unfair Practices: The DMCCA bans fake reviews and expands the list of prohibited commercial practices.

• Information and Transparency: When inviting customers to purchase, brands must provide all material information upfront. Omitting key details, even unintentionally, could now lead to enforcement action

What Should Brands Do Next?

• Audit and Update: Review your customer journey, website, and marketing materials. Are all fees transparent? Are reviews genuine? Are subscription terms clear (and easy to cancel)?

• Train Your Team: Ensure your staff understand the new rules, especially those in marketing, customer service, and digital teams.

• Monitor Compliance: Set up regular checks. The CMA’s powers are vast. Ignorance won’t be a defence.

• Engage with Experts: If in doubt, seek advice. The cost of non-compliance could be severe, both financially and reputationally.

In Summary

The DMCCA is more than a piece of legislation, It shows that the UK is taking consumer protection and fair competition seriously in the digital age. Brands that embrace these changes, prioritise transparency, and put customers first will not only avoid penalties but also build stronger, more resilient businesses.

At Maven, we believe that great brands are built on trust, creativity, and genuine connection. The DMCCA challenges all of us to raise our game-and that’s an opportunity we need to take.

Case Study: How the DMCCA May Be Enforced

To illustrate the potential impact of the Digital Markets, Competition and Consumers Act 2024 (DMCCA) on brands, here’s a fictious example based on real enforcement priorities and case studies highlighted by regulators….

Case Study: Tackling Fake Reviews in Online Retail

Imagine a well-known UK online retailer,….let’s call them “ShopSmart,”….. which allows third-party sellers to list products on its platform.

Over time, ShopSmart’s customer service team notices an increase in complaints about misleading reviews. Some customers claim that the glowing five-star ratings do not match their experience, and some products seem to have suspiciously positive feedback.

So, what’s the Issue…

Under the new DMCCA rules, fake reviews are explicitly targeted as an unfair commercial practice. The Competition and Markets Authority (CMA) has flagged this as a key priority, recognising the harm such practices cause to consumers and to competitors operating fairly.

How May Enforcement Unfold…

• Investigation: The CMA receives the consumer complaints and opens an investigation into ‘ShopSmart’. NB. Using its new direct enforcement powers, the CMA can gather this evidence without lengthy court proceedings.

• Risk Assessment: ‘ShopSmart’ would be required to conduct a comprehensive review of its online selling practices, including its review moderation systems. The CMA may issue an information notice demanding details of how reviews are collected, verified, and displayed.

• Findings: In this (fictious) case, the CMA discovers that ‘ShopSmart’ has not done enough to prevent or remove fake reviews, and in some cases, sellers have been incentivising positive feedback in violation of the new rules.

• Enforcement Action: The CMA may issue a provisional infringement notice, requiring ‘ShopSmart’ to remove all fake reviews and overhaul its review verification processes. If ShopSmart fails to comply, the CMA can issue a final infringement notice and impose a fine of up to 10% of ShopSmart’s turnover (globally) or £300,000, whichever is higher.

• Remediation: ShopSmart must implement robust systems to detect and prevent fake reviews, retrain staff, and issue clear guidance to third-party sellers. The CMA may monitor compliance and could require regular updates.

Key Takeaways for Brands:

• Proactive Compliance: Brands must audit their digital platforms for risks such as fake reviews, hidden fees, or aggressive sales tactics1. Waiting for enforcement action is risky, given the scale of potential fines and reputational damage.

• Transparency and Fairness: The DMCCA emphasises the need for clear, honest information at every stage of the customer journey. Practices like “drip pricing” (where fees are hidden until late in the process) or misleading claims are now firmly in the spotlight.

• Swift Enforcement: The CMA’s ability to act without court proceedings means brands must be ready to respond quickly to investigations and enforcement notices.

• Competitive Advantage: Brands that invest in compliance and fair practices not only avoid penalties but also gain consumer trust. This will become a key differentiator in crowded digital markets.

This is a new era of accountability-where proactive compliance, transparency, and ethical practices are not just best practice, but essential for survival and growth.