British consumers have received a monumental boost in protection as the landmark Digital Markets, Competition and Consumers Act received Royal Assent and officially became law this week. This sweeping legislation represents the most significant overhaul of consumer rights in decades, putting power back into the hands of shoppers across the United Kingdom.
The new law takes direct aim at the subscription trap culture that has plagued consumers, requiring businesses to provide clear information about terms and sending reminders before contracts automatically renew. Companies must now ensure customers can exit agreements with the same ease they entered them.
Cracking Down on Deceptive Practices
The legislation introduces tough new measures against fake reviews, making it illegal to commission or host fraudulent testimonials that mislead shoppers. This move addresses growing concerns about review manipulation on major online marketplaces.
Additionally, the Act empowers the Competition and Markets Authority (CMA) to enforce consumer law directly, allowing for faster action against companies exploiting customers without requiring court approval for every case.
Enhanced Protection for Vulnerable Consumers
The law specifically targets practices that disproportionately affect vulnerable consumers, including fake reviews and confusing contract terms. Businesses now face significant fines of up to 10% of global turnover for breaching consumer protection laws.
Consumer Minister Kevin Hollinrake stated: "This new law ensures British consumers are protected regardless of where they shop. It provides a safety net against rip-offs and ensures markets remain competitive."
What This Means for UK Shoppers
- Simpler cancellation of subscription services with clear exit routes
- Protection against fake reviews that distort purchasing decisions
- Stronger enforcement against companies violating consumer rights
- Greater transparency in pricing and contract terms
- Enhanced rights for those purchasing digital content and services
The legislation represents a significant shift in the balance of power between businesses and consumers, ensuring UK shoppers have among the strongest protections in the world against unfair practices in both physical and digital marketplaces.
