Unpacking the Digital Markets, Competition and Consumers Act 2024: New Rules for Consumer Protection

The UK government is set to enhance consumer protection under the new Digital Markets, Competition and Consumers Act 2024. This legislation introduces a significant shift in how consumer law is enforced, empowering the Competition and Markets Authority (CMA) with new direct enforcement powers. Here's a breakdown of what this means for consumers and businesses alike.

What’s Changing?

Traditionally, the CMA had to go through the courts to address breaches of consumer law. This process could be lengthy and complex. Under the new rules, the CMA can now directly decide if a violation has occurred and impose penalties without court intervention. This aims to streamline enforcement and enhance consumer protection efficiency.

Scope and Application

The new rules apply across all of the UK—England, Wales, Scotland, and Northern Ireland. They are designed to cover a wide array of consumer laws listed in the Act, ensuring comprehensive coverage and protection for consumers.

Key Procedural Rules

The CMA’s new powers come with a robust framework to ensure transparency and accountability. Here are the highlights:

• Investigation Process: The CMA will have clear procedures for investigating breaches, including timelines for businesses to respond to claims.
• Evidence Submission: Companies must provide evidence within specified time limits or risk the CMA ruling against them.
• Complaints and Settlements: There are established procedures for handling complaints and reaching settlements, ensuring fair treatment for all parties involved.
• Publishing Decisions: The CMA will publish infringement notices on its website, increasing public awareness and deterring future violations.

Why These Changes Matter

The goal is to make consumer law enforcement more predictable and accountable. By setting out clear rules, businesses and consumers can better understand the process and what to expect, ensuring fair and efficient handling of consumer protection issues.

Consultation and Support

The changes have been largely welcomed following public consultation, with many supporting the CMA’s new powers, provided there are adequate safeguards. The government believes the current framework offers sufficient protections and has decided to maintain its proposed approach despite some calls for additional measures.

Impact on Businesses and the Public Sector

The new rules are designed to minimize additional burdens on businesses, particularly compliant ones, and have negligible impact on charities, voluntary bodies, or the public sector. Non-compliant businesses, however, should prepare for stricter enforcement.

Monitoring and Future Reviews

While there’s no immediate plan for a formal review of these changes, the government will keep an eye on their effectiveness. The Secretary of State has the power to request reports or amend rules if necessary, ensuring the legislation remains effective and relevant.

Overall, this legislation marks a proactive step towards more dynamic and responsive consumer protection in the UK, reflecting the government’s commitment to safeguarding consumer rights in a rapidly evolving market landscape.