Leeds-based businesses trading online are urged to review their sales practices after introducing the UK’s new Digital Markets, Competition and Consumers Act 2024. The legislation significantly expands consumer protection laws, particularly targeting misleading pricing tactics and inauthentic online reviews.
The new Act replaces the 2008 Consumer Protection from Unfair Trading Regulations and introduces clear requirements for digital commerce. It explicitly bans practices such as ‘drip pricing’—where fees are added late in the purchase process—and the use or facilitation of fake or incentivised reviews. Businesses must now display full pricing upfront, including mandatory charges like booking or membership fees.
The Act outlines 32 specific unfair practices, with regulatory enforcement under the Competition and Markets Authority. Firms that fail to comply could face fines of up to £300,000 or 10% of global turnover, whichever is higher.
The CMA expects businesses to establish transparent review policies, assess risk regularly, and proactively address manipulation. These changes apply to businesses of all sizes, including SMEs, and reflect a broader effort to ensure trust and fairness in the digital marketplace.
Commercial legal experts are advising businesses to review their policies and digital practices immediately to avoid potential penalties.
