Digital Markets, Competition and Consumers Act 2024
If you run a business and sell commercial products to consumers (the general public), you need to ensure you are acting responsibly and fairly towards your customers.
The Digital Markets, Competition and Consumers Act 2024 has been introduced to regulate this and replaces the Consumer Protection from Unfair Trading Regulations 2008.
Non-compliance is treated seriously and can result in significant fines and imprisonment if a business is convicted.
The Act applies to:
Traders who sell products to consumers
Traders who promote another businesses' products to consumers
Traders who buy products from consumers
Traders who help consumers sell products to other consumers
What it covers:
The Act covers a range of key areas
Banned practices
There are 32 individual activities banned under the act, listed from page 20.
Misleading consumers
Omitting important 'material information' during the 'invitation to purchase' stage, to allow the customer to make an informed choice, such as declaring the total pricing including all mandatory extra charges such as delivery costs and taxes (see page 34)
Omiting details of the identity, place of business and email address of the trader, cancellation rights etc. See page 42-43 for examples.
Providing false or misleading information, for examples see page 46-47.
It also includes deceptive presentation of goods for sale, and confusing a customer in marketing where you may be confused with another trader or brand. See page 49.
Traders also may not mislead customers about their compliance with professional Codes of Conduct for their sector or industry. See page 48.
For guidance on how to get these areas right in your business, see pages 51-56.
Aggressive practices
Harassment, coercion and undue influence are three techniques that are used to pressure consumers into buying goods, and are prohibited under the Act. They can lead to a consumer purchasing a product at a higher price, or on disadvantageous terms. For examples of this see pages 55-58.
Professional diligence
The Act requires traders to use care in how they treat consumers, acting professionally and with consideration for the consumer’s interests or expectations and taking steps to protect these. For example, a trader should not take advantage of the consumer’s lack of experience or unfamiliarity with a product. For examples see pages 61-63.
Further guidance:
The Competition and Markets Authority (CMA) has produced some guidance to help businesses understand and comply with these regulations. They give businesses useful examples for different industries such as selling cars, home improvements, advertising a prize draw and reselling gig tickets.
Understanding unfair commercial practices: examples - GOV.UK