Businesses that sell to consumers must ensure that they comply with the statutory requirements for consumer contracts, including the prohibition of fake reviews and other banned unfair commercial practices, and the provision of certain pre-contractual information and right to cancel where the contract is formed ‘at a distance’.
This has an obvious impact for online businesses, and compliance is especially important since the DMCCA has given much greater powers of recourse to a consumer who suffers from a trader’s breach.
The DMCCA bolsters existing consumer rights and protections by granting the Competition and Markets Authority (CMA) increased enforcement powers, updating existing rules on unfair practices, as well as promoting competition in digital markets.
Our Commercial Lawyers explore the impact of the DMCCA on compliance for online businesses.
Updates under the DMCCA
Among the most significant changes introduced by the DMCCA are the new direct powers of enforcement granted to the CMA.
The CMA can now investigate suspected infringements, serve infringement notices and other notices, and impose direct financial penalties against consumer-facing businesses up to a maximum amount of £300,000 or, if higher, 10% of the total value of the trader’s turnover.
In addition to the CMA’s direct enforcement powers, the DMCCA introduced two types of enforcers of consumer rights compliance:
- public designated authorities, such as the Financial Conduct Authority and the Information Commissioner’s Office; and
- private designated enforcers, such as the Consumers’ Association.
Since the term ‘accessory’ can include a company director, this goes further than any enforcement ability prior to the DMCCA, as directors have not previously been personally liable for consumer law contraventions.
Banned practices
Unfair commercial practices now fall under the remit of the DMCCA, which expressly prohibits the following unfair practices, among others:
- Misleading Pricing, such as drip pricing (where the total price is higher than a consumer may have initially thought, due to ‘hidden’ but necessary extras), is prohibited, and traders are required to include the total price, including any variable mandatory fees that may occur further along the purchase process.
- Fake Reviews are prohibited, which include fake or misleading reviews, any incentivised reviews that are not disclosed (such as influencer advertising), and publishing consumer reviews in a misleading manner. The prohibition also requires traders to take active steps to prevent and remove banned or misleading consumer review information when publishing reviews.
What action has the CMA taken?
Since the DMCCA has come into force, the CMA has sought to act in a manner that promotes compliance rather than working as a deterrent.
Guidance from the CMA issued earlier this year stressed that their objectives will include helping businesses to ‘understand the conduct that is unacceptable, and to know that ‘their competitors are playing by the same rules’.
With this in mind, the CMA has issued a number of guidance documents which aim to inform businesses about the new enforcement regime, the prohibitions on fake and misleading reviews, and how to report potential breaches.
CMA investigation into fake reviews
In June, the CMA conducted an investigation into Amazon over concerns the company was breaching consumer law by failing to take adequate action to protect consumers from fake reviews. As a result, both Amazon and Google have committed to upholding the prohibitions of the DMCCA by undertaking to enhance their existing systems and processes to tackle fake ratings and reviews.
CMA strategic market status
In October, the CMA designated both Apple and Google with strategic market status in relation to their mobile platforms, which include the operating systems, app distribution, browsers, and browser engines on smartphones and tablets.
This means that these entities are deemed to hold substantial, entrenched market power and a position of strategic significance, something which seems unlikely to change in the near future, even with other technological developments like AI.
To reach both Apple and Android users, businesses must develop and distribute their content through Apple and Google’s mobile platforms. This designation means that the CMA can consider proportionate, targeted interventions to maintain effective competition and to ensure that consumers and businesses relying on these providers are treated fairly.
What comes next?
Subscription contracts are the next consumer sector to receive updated compliance requirements under the DMCCA. Online subscription contracts (which are automatically recurring contracts for the supply of goods or services) have become increasingly common in recent years.
The DMCCA will update the requirements on traders in relation to pre-contractual information, reminder notices, cancellation rights, and fixed 14-day free cancellation periods. These provisions will be implemented near the beginning of 2026 and attempt to combat the estimated £1.6 billion spent by UK consumers each year in unwanted subscription contracts.
Contact our Commercial Solicitors
If you want to bolster your existing terms or ensure that your B2C platform complies with UK consumer law, our Commercial Solicitors can help.
0161 941 4000
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Josh Durkin
Trainee Solicitor
Josh joined Myerson as a Trainee Solicitor in September 2025. Prior to joining the firm, Josh obtained his law degree from the University of Sheffield, then completed his LPC LLM at the University of Law in Manchester in 2024, achieving a Distinction.
About Josh Durkin