Changes to consumer law – the new Digital Markets, Competition & Consumers Act
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dhewitt@abta.co.uk Thu, 03/20/2025 - 08:54
The Digital Markets, Competition & Consumers Act 2024 (DMCC) was passed last year and is being brought into force in stages. We now know that the consumer law parts will come in on 6 April 2025. In very general terms what this means is that:
The law at the moment, in the CPRs, contains the general rule that advertised prices must not be misleading. Therefore all compulsory costs must be included. But this issue is getting its own particular mention in the new Act, in an important section which provides that all invitations to purchase must include certain material information, or an offence will have been committed. The material information required includes the main characteristics of the product, and the identity of the trader, among other points, and the total price of the product. It goes on to say that:
See the DMCC s230 External Link
New offences concerning fake consumer reviews are being added to the list of banned practices. For example, supplying fake reviews, traders commissioning fake reviews, and traders publishing reviews without taking reasonable and proportionate steps to prevent the publication of fake reviews.
See the DMCC schedule 20 External Link
The CMA has consulted on how the law should apply. During the consultations, ABTA gave feedback and sought clarity on behalf of members. Specific updates on those points haven’t yet been provided by the CMA. For example, ABTA provided reasons why the CMA should not state that tourist taxes and resort fees paid by clients in destination must be included in UK holiday prices. On fake reviews, ABTA requested more information on what businesses are expected to do if they use content from third party review websites e.g. Tripadvisor.
The CMA is issuing guidance to go with the new Act. In particular:
The CMA has previously consulted on this guidance and recently issued an update to say that it plans to finalise all the guidance before 6 April. It will also publish an approach document, which will outline its enforcement priorities for the first 12 months of the new regime.
There will be a busy period coming up for consumer law with the publication of the guidance and the focus on how the CMA will use its new powers. We will keep you updated and let you know when more information is released. We will be covering these topics in our seminars, regional meetings, and members conference call.
In the meantime, you should think about your compliance with consumer law. For example:
Do your websites provide the information consumers need to make an informed choice, in a clear and timely way?
Are your consumer Ts and Cs fair and balanced?
Is your advertising truthful and not misleading?
There is guidance currently available that you can use, for example ABTA’s guidance notes on
Also for example Business Companion guidance on Trading Standards law and CMA unfair terms guidance.
If you have any queries, please contact Member Support on membersupport@abta.co.uk, or 020 3117 0597.
Continue reading...
Full Page image
dhewitt@abta.co.uk Thu, 03/20/2025 - 08:54
The Digital Markets, Competition & Consumers Act 2024 (DMCC) was passed last year and is being brought into force in stages. We now know that the consumer law parts will come in on 6 April 2025. In very general terms what this means is that:
- The Competition & Markets Authority (CMA) will have new direct enforcement powers. It will be able to decide on breaches of consumer law without taking a case to Court, and it can issue fines for breaches of up to 10% of turnover. It can also investigate business conduct, issue fines if businesses don’t comply with investigations, and order redress for consumers, among other powers. Enforcement will be simpler and faster.
- A main part of consumer law will now be in this Act. The content of the Consumer Protection from Unfair Trading Regulations (CPRs) will transfer over – this includes the stipulations that businesses must act towards consumers honestly and in good faith, they must not mislead consumers or use aggressive sales techniques and must avoid various banned practices. There will also be the addition of some new rules. Two of the more important of these for the travel industry are around advertising prices (drip pricing) and fake online reviews.
The law
Advertising and drip pricing
The law at the moment, in the CPRs, contains the general rule that advertised prices must not be misleading. Therefore all compulsory costs must be included. But this issue is getting its own particular mention in the new Act, in an important section which provides that all invitations to purchase must include certain material information, or an offence will have been committed. The material information required includes the main characteristics of the product, and the identity of the trader, among other points, and the total price of the product. It goes on to say that:
- the total price includes any fees, taxes, charges or other payments that the consumer will necessarily incur if the consumer purchases the product
- the total price doesn’t have to be shown if, owing to the nature of the product, the whole or any part of the total price cannot reasonably be calculated in advance
- In this case traders are to show how the price (or that part of it) will be calculated
- so that it enables the consumer to calculate the total price, and
- this information must be set out with equal prominence to the display of the price.
- In this case traders are to show how the price (or that part of it) will be calculated
See the DMCC s230 External Link
Fake reviews
New offences concerning fake consumer reviews are being added to the list of banned practices. For example, supplying fake reviews, traders commissioning fake reviews, and traders publishing reviews without taking reasonable and proportionate steps to prevent the publication of fake reviews.
See the DMCC schedule 20 External Link
Seeking clarity for members
The CMA has consulted on how the law should apply. During the consultations, ABTA gave feedback and sought clarity on behalf of members. Specific updates on those points haven’t yet been provided by the CMA. For example, ABTA provided reasons why the CMA should not state that tourist taxes and resort fees paid by clients in destination must be included in UK holiday prices. On fake reviews, ABTA requested more information on what businesses are expected to do if they use content from third party review websites e.g. Tripadvisor.
Guidance
The CMA is issuing guidance to go with the new Act. In particular:
- It has released guidance on its use of its new fining powers – e.g. how investigations into businesses will be carried out, what businesses will need to do, how the CMA will arrive at its fines
- It will issue guidance on unfair commercial practices – what businesses need to do to comply with the consumer law in the Act, in the view of the CMA, covering general misleading offences as well as fake reviews and drip pricing
The CMA has previously consulted on this guidance and recently issued an update to say that it plans to finalise all the guidance before 6 April. It will also publish an approach document, which will outline its enforcement priorities for the first 12 months of the new regime.
ABTA advice
There will be a busy period coming up for consumer law with the publication of the guidance and the focus on how the CMA will use its new powers. We will keep you updated and let you know when more information is released. We will be covering these topics in our seminars, regional meetings, and members conference call.
In the meantime, you should think about your compliance with consumer law. For example:
Do your websites provide the information consumers need to make an informed choice, in a clear and timely way?
Are your consumer Ts and Cs fair and balanced?
Is your advertising truthful and not misleading?
There is guidance currently available that you can use, for example ABTA’s guidance notes on
- the Consumer Rights Act, which covers consumer contracts
- greenwashing
- Code of Conduct guidance
- ABTA’s model booking conditions
Also for example Business Companion guidance on Trading Standards law and CMA unfair terms guidance.
If you have any queries, please contact Member Support on membersupport@abta.co.uk, or 020 3117 0597.
Continue reading...
