Changes to consumer laws and B2C engagement take effect

The Digital Markets Competition and Consumer Act 2024 (DMCCA) came into force on 1 January 2025, and is now in effect, bringing with it significant changes to consumer law since the Consumer Rights Act 2015.

Snapshot of the DMCCA

Outright ban of “unfair commercial practices”. The DMCCA overhauls existing consumer protections under the Consumer Protection from Unfair Trading Regulations and introduces several new provisions aimed at enhancing consumer rights and processes. This includes the outright banning of certain unfair commercial practices such as drip pricing and those in relation to fake or concealed incentivised consumer reviews.

Changes to subscription rules. The DMCCA also tightens the rules around B2C subscription contracts, adding new requirements for subscription services to comply with, however these changes are not expected to come into force until Spring 2026.

Strengthens the role of the CMA. The CMA will now be able to directly investigate suspected infringements and issue enforcement notices without the need for lengthy court proceedings. The DMCCA brings with it the ability for the CMA to impose penalties of up to 10% of global turnover. This is a significant shift from the previous regime which largely required court involvement for enforcement actions.

Phased implementation

The first set of changes relating to consumer law are now in effect, and the CMA has published guidance on unfair commercial practices that are banned by the DMCCA and subject to enforcement action. It is worth noting that many of these “unfair commercial practices” are not new in principle, but the main difference now is that the CMA has the ability to investigate and impose penalties for breaches of these rules. The CMA has also published guidance on how it will enforce the DMCCA. For the first 12 months, the CMA will target particularly harmful behaviours to consumers such as aggressive sales practices that prey on consumers in vulnerable positions, fees that are hidden until late in the buying process, information being given to consumers that is objectively false, unfair and unbalanced contract terms and fake reviews.

What can we expect next?

The CMA will likely start the first wave of its investigation and enforcement, focusing on the “most egregious” breaches of the DMCCA. The CMA has indicated that it will be consulting further on drip pricing this year, including in relation to fixed-term period contracts. We expect this further guidance in relation to drip pricing to be published this autumn. Look out for our further articles on the impacts of the DMCCA on influencer marketing, prize draws and competitions and subscription services.

Introduction of the Arbitration Act 2025

The Arbitration Act 2025 (the AA 2025), which amends the previous arbitration regime under the Arbitration Act 1996 (the AA 1996), received Royal Assent on 24 February 2025.

The AA 2025 introduces a number of refinements to the arbitration regime in England and Wales but the key aspects to note are as follows:

  • The changes which the AA 2025 introduces will apply to all arbitral proceedings seated in England and Wales commenced after the Act comes into force (subject to certain transitional provisions). This is irrespective of when the relevant arbitration agreement was entered into and will therefore apply to agreements pre-dating the AA 2025.
  • The AA 2025 clarifies the position regarding choice of law. The previous position at common law engaged various issues of contractual interpretation, whereas the AA 2025 provides that the governing law for the arbitration will be determined by its seat (absent express agreement to the contrary). The introduction of this amendment is to be welcomed as it clarifies the position and should reduce potentially costly satellite litigation, such as last year’s judgment in UniCredit Bank GmbH v RusChemAlliance LLC.
  • The AA 2025 codifies the common law duty of impartiality for arbitrators, both prior to and after the commencement of arbitral proceedings. As part of this duty, arbitrators are required to disclose circumstances which “might reasonably give rise to justifiable doubts as to the [arbitrator’s] impartiality”. It is notable that this duty of disclosure is slightly wider than under the common law regime and requires arbitrators to disclose circumstances of which they “ought reasonably” to be aware (rather than just circumstances within their actual knowledge).
  • Subject to the parties’ agreement to the contrary, arbitrators are given the express power to determine issues with no real prospect of success on a summary basis. This will enable the efficient disposal of unmeritorious claims or defences and has the potential to save substantial time and costs for parties.
  • The position of emergency arbitrators is strengthened by providing them with the same means as regular arbitrators to make peremptory orders and give parties permission to apply for a Court order. This should increase confidence in emergency arbitrators and encourage compliance with their decisions.

The AA 2025’s refinements to the arbitral process are designed to streamline arbitral proceedings and ensure that London remains one of the leading forums for arbitrations. Its introduction is to be welcomed.

Authors:

Lizzie Williams, partner

Dennis Brunner, senior associate

New statutory right to neonatal care leave and pay: key takeaways

The new statutory right to neonatal care leave came into effect on 6 April 2025. This allows parents to have additional time off to be with a baby who is receiving neonatal care.

Under the Neonatal Care (Leave and Pay) Act 2023, eligible parents can take time off work to be with a baby who is receiving neonatal care. This new right introduces a leave and pay entitlement for qualifying working parents, with the aim of providing better support to those families and an element of income protection.

Neonatal care leave

Neonatal care leave is a day one right for employees; it does not apply to workers or self-employed contractors. It also only applies to parents of babies born on or after 6 April 2025.

Qualifying parents (including fathers, non-birthing, adoptive and surrogate parents) who have a baby admitted to neonatal care up to the age of 28 days may be eligible for neonatal care leave after their baby has been receiving care for seven days or more. 

The entitlement is to one week’s leave for each week a baby has neonatal care, up to a maximum of 12 weeks. Neonatal care leave must be taken as seven consecutive days, so parents have to take a minimum of one week.

Neonatal care leave is additional to other types of family leave, and each parent has their own leave entitlement. This means that fathers and non-birthing parents now have a specific right to leave, allowing them to spend more time with their baby receiving neonatal care. Where parents do not meet eligibility criteria, they may be able to rely on other forms of statutory leave, such as parental leave or time off for dependents.

Both neonatal leave and pay (see below) can be taken in two tiers; Tier 1 is while a baby is still receiving care plus a week after, and Tier 2 is within 68 weeks of the birth. Neonatal leave can therefore be accrued and taken at a later date. The notice an employee must give their employer depends on whether they are taking Tier 1 or Tier 2 leave.

The leave is not limited to the time when a baby is in a neonatal hospital unit. It can also apply to certain neonatal care after leaving hospital or to palliative/end of life care.

Neonatal care pay

Additionally, eligible parents may be entitled to up to 12 weeks of neonatal care pay if they have 26 weeks of continuous service with their employer and meet the minimum National Insurance earnings threshold (for April 2025-26, this is an average of £125 per week gross).

The current statutory rate for neonatal care pay is £187.18, although of course it is open to employers to offer an enhanced pay entitlement under their own workplace policies. 

Next steps

Employers should consider whether to introduce a specific policy on neonatal care leave and pay, or how their existing policies may need updating. They may also wish to consider communicating the new entitlement to managers or employees more generally.

For further information, advice on a specific situation or to update your own workplace policies, please contact our employment team.

The future of UK Employment law in the film and TV industry: 2025 and beyond

The Employment Rights Bill, described by the government as “the biggest upgrade to workers’ rights in a generation”, has been making progress through Parliament over the last few months. The latest round of amendments to the Bill has provided further insight into what lies ahead.

A headline change is the day one right not to be unfairly dismissed. This is expected to be subject to an initial period of employment, when a lighter touch procedure for dismissal can be used. The details of the process and the period haven’t been confirmed, but nine months has been suggested. For companies who hire in crew and talent for specific productions or projects, this could mean significant change is needed in practices for recruitment and terminations.

The Bill outlines further updates to workplace harassment laws. Employers are already under a positive duty to take “reasonable steps” to prevent sexual harassment and must implement measures to assess and mitigate the risk of sexual harassment. The Bill strengthens the law to require employers to take “all reasonable steps” ( “all” being the key word) and introduces liability for third party harassment. Many production companies are already thinking ahead to this duty, with risk assessments that extend to third party harassment, but this will be one to revisit as the detail emerges. What is clear is that solely relying on the roll out of ED&I training is no longer enough.

Other changes of significance include: the introduction of day one rights in respect of statutory sick pay, paternity leave and parental leave; a right to bereavement leave; and enhanced maternity protections. Dismissals of employees who are pregnant, on maternity leave or during a six month return to work period, would be prohibited, other than in specific circumstances. New flexible working rights are also proposed, meaning that an employer can only refuse flexibility requests where it has a “reasonable” basis to do so. As expected, these changes move the law towards stronger rights and protections, and work life balance, for working people.

Far reaching changes are also expected in respect of restrictions on zero-hours contracts (including the right to request guaranteed hours and reasonable notice of work schedules) and the practice of ‘fire and rehire’. For some sectors these will mean huge upheaval; for those in film and TV it will depend on their current use of such practices. The Bill also bolsters collective rights, including introducing changes to the trade union recognition framework and the ability of unions to take industrial action, developments which could be very significant for the media industry.

And what of the anticipated single status of worker? The government originally proposed to remove the (often confusing) distinction between ‘employees’ and ‘workers’, which would mean that if someone was not a genuinely self-employed freelancer, they must be an employee. Again, this would be particularly relevant to production companies, who may be in the practice of engaging crew as workers. For now, this change does not appear in the Bill, but further consultation is expected in 2025.

So, what next? Most legal changes won’t come into force until 2026, but it’s never too early to start preparing and thinking especially about recruitment and dismissal processes, and how this might need to change in your organisation. In the meantime, we’ll watch this space as the Bill moves through Parliament and the devil in the detail comes into sharper focus, with further updates to come.

COURT OF APPEAL VERDICT IN EXCLUSION CLAUSE DISPUTE

In February 2025 the Court of Appeal (by a 2:1 majority) dismissed an appeal brought by EE against Virgin Mobile in relation to a significant claim arising out of a telecommunications supply agreement.

The Court of Appeal agreed with the first instance decision that the exclusion clause excluded EE’s entire £24.6m loss of profit claim against Virgin Mobile.

EE claimed that it had suffered loss and damage in the amount of £24.6m as a result of Virgin Mobile breaching an exclusivity obligation in the telecommunications supply agreement, because EE had lost the revenue that it would have received from Virgin Mobile under the terms of the agreement had the exclusivity obligation not been breached.

Virgin Mobile denied breaching the agreement as alleged but argued that, in any event, EE’s claim was precluded because it was, in substance, a claim for anticipated profits. It therefore fell within the scope of the exclusion clause in the agreement which provided that “Neither Party shall be liable to the other in respect of … anticipated profits”.

EE argued that this interpretation could not be correct because (amongst other things), on the facts which occurred, EE did not have a wasted expenditure claim or a good argument for an injunction, so excluding the loss of profits claim would leave EE without an effective remedy, creating commercial absurdity and defeating the main purpose of the agreement.

The majority of the Court of Appeal rejected this argument because the specific facts which occurred, where no alternative remedy was viable, were not known to the parties when they entered into the agreement and therefore should not affect its interpretation. It was held that, applying the proper legal principles, the exclusion clause did preclude EE’s entire claim.

However, the Court of Appeal did not reach this conclusion easily, and indeed Phillips LJ dissented, noting that “it would be surprising if the parties intended that [Virgin Media] could breach the key exclusivity provision, unlawfully diverting its customers to a third party supplier, without incurring liability to pay EE damages reflecting the loss of revenue resulting from that breach”.

This case provides a further example of the unpredictability of the interpretation of exclusion clauses and the importance of clear, future-proof, contract drafting.

Important amendments to procurement legislation

On 24 February 2025 the Procurement Act 2023 (PA 2023) came into force.

This is significant for both public sector entities and their suppliers because the PA 2023 replaces the well-established EU-founded regime under the Public Contracts Regulations 2015 which previously governed public sector procurement processes.

The most striking change to the law is that the PA 2023 introduces a new supplier exclusion and debarment regime which means that suppliers who fail to meet particular standards or pose particular risks (for example, risks to national security) can be debarred from tendering for public contracts. This goes further than the previous regime which only allowed for suppliers to be excluded from particular projects.

In addition to the obvious financial implications of being precluded from participating in new tenders or being awarded call-off contracts, there are likely to be reputational consequences for the affected suppliers as debarred suppliers will be added to a public register, with the ground for their debarment also given.

There are routes to challenge disbarment but, just like any other public procurement challenge, it is advisable to take action quickly and obtain specialist advice to avoid falling foul of the procedural hurdles and limitation issues which claims of this nature often face.

Agree to disagree: what the Higgs v Farmor’s School judgment could mean for employers and employees

The Court of Appeal gave judgment last week in another of what has been a series of cases dealing with conflicts between beliefs expressed by employees, and the categories of protected characteristics under the Equality Act 2010. 

In this case, an employee of a school, Mrs Higgs, had expressed concerns  via her private social media about teaching in schools relating to same-sex marriage and gender identity. Another parent saw the comments, which had been posted in a manner which did not identify the school and used the employee’s maiden name (which was different from the name she used at school), and had complained to the school about the views expressed, which were described as offensive. Following an investigation and disciplinary process, the employee was dismissed and brought, amongst other claims, a claim that she had been subjected to detriment because of her protected beliefs.

The case takes a robust approach, supporting the freedom of employees to express and manifest protected beliefs, though it recognises that some limitation is likely to be appropriate in the manner of expression of belief and related conduct.

Where does all of this leave employers in practice? They will be keen to ensure that they are complying with their Equality Act obligations in providing a safe workplace for all employees. However, they will surely also wish to avoid being drawn into personal disputes between employees arising out of conflicting views on contentious topics, or getting caught up in social media storms as part of wider campaigns on contentious topics, whether covered by the Equality Act or not.

Fundamentally,  it is useful to recognise that there is a level of conflict built into the Equality Act. Protected characteristics include gender re-assignment and sexual orientation, but protection of religion and belief  includes protection of a belief that sex is immutable and cannot be changed. Most of the major world religions do not recognise same sex marriage as the equivalent of marriage between a man and a woman. The Courts have also made clear that it is an error on the part of an employer to engage in stereotypes, which includes making an assumption about an individual’s personal beliefs by reference to their race or religion. Not all individuals who adhere to a religion believe in every rule or dogma of that religion, and religious beliefs are not always aligned with ethnic or national origin. Non-belief is protected in the same way as belief. Employers can therefore find themselves managing staff who hold deeply opposing views, each of which gives rise to a right to be protected from detriment because of their belief or other protected characteristics.

Employers will clearly  not want to find themselves refereeing disputes between employees or being pressured to take sides where conflict arises. There is a clear risk to employers of being on the receiving end of Employment Tribunal claims if they are seen to punish an individual because of a protected characteristic. Such cases will often be very popular in the media and can therefore do reputational harm as well as cost a lot of time and money.

The Court of Appeal judgment also expressly deals with the impact of rights to free speech under the European Convention on Human Rights in addition to the Equality Act rights. Under the Human Rights Act 1998, UK courts are obliged to interpret legislation in line with the European Convention as far as  is reasonably possible, so that the provisions of the convention are effectively indirectly introduced into UK statutory employment provisions. Such rights go beyond those relating to protected characteristics and will therefore include rights to speak about political issues of the day.

The right to free speech is not absolute. It is, however,  wide-ranging, and  in the Higgs v Farmor case, the Court of Appeal expressly cited the principle that the freedom to speak only inoffensively  is a freedom not worth having. There is no right to be protected from hearing things with which you disagree and employees could usefully be reminded of this.

Some limits on freedom of speech are permitted, to the extent that such speech would infringe on the rights and liberties of others, but no one has a right not to hear an opposing or, to them, disagreeable view. 

It will not be appropriate, therefore, for employers simply to seek to forbid employees from expressing views in the workplace or sharing the fact of any protected characteristic they may hold. In the Higgs v Farmor’s case, one of Mrs Higgs’ beliefs was that as a Christian she was required to bear witness to her beliefs, which would involve speaking about them. This is itself a protected belief, although the protection afforded to manifestation of belief does not extend to or permit continued proselytising or hectoring of those with different views.  Clear guidance that employees should not persist in conversations with others who  have made it known that they disagree, or are simply not interested, should be acceptable.

It is therefore useful for employers to now give thought to providing clear guidance to employees, whether in an overarching stand-alone policy detailing an expectation of respectful disagreement in relation to engagement on contentious topics, both in the workplace and beyond, or by adding to individual existing policies. The guidance can remind employees that they should not conduct themselves in a manner likely to amount to bullying or harassment, or to create a degrading or hostile environment for any employee. That does not preclude them from being open about their protected characteristics or beliefs, but they must not do so in a hostile or intimidating fashion. Employers can also helpfully remind staff that the workplace is not the right forum for discussion of contentious topics where feelings run high and disagreement is evident. 

Such guidance can remind staff that whilst they may enjoy the protections under the Equality Act, in relation to protection of belief non-believers are protected in the same way as believers, and so are free to make known their non- belief.  No employee is entitled to impose their views on a colleague or to subject a colleague to detriment on the basis of what they do or do not believe, and an Employer is entitled to say that disputes on  such issues are ultimately not for the workplace. 

Reminding employees that where differences arise, they should “agree to disagree”, or seek to disagree agreeably and respectfully, will be useful guidance both generally and as part of anti-harassment and bullying and equality polices published by employers. Such an approach can manage expectations and also provide employers with a  basis on which to intervene, if necessary, where conflict has arisen, without being seen to take sides.

Employers will already typically include provisions in social media policies, reminding employees not to identify their employer in personal posts and to avoid any suggestion that personal views expressed in any way represent the views of the employer.  A reminder that employees are entitled to have social media accounts and to post on subjects of interest, and that the employer does not take responsibility for such material, will also be helpful. This might usefully also remind employees that employers will not generally seek to intervene in disputes relating to such material.

We can hope that the pragmatic approach taken by the Court of Appeal might serve, in time, to discourage any practice of seeking to pressure employers to disassociate themselves from employees who have expressed views which are not palatable to all, provided that those views are not expressed in a manner which goes beyond the limits of freedom of speech.

The hero or the villain: when the online front page goes wrong

The Independent Press Standards Organisation (IPSO) has upheld a complaint against Mail Online over a collage of pictures on their online front page that gave a “misleading impression” that a ‘hero’ security guard who stopped a knife attack was actually the perpetrator.

The IPSO rejected the newspaper’s defence that this was made clear in the full article when users clicked through. The decision highlights the risk of free-standing headlines and images that trade accuracy for impact.

The article

Mail Online’s mobile home page published the headline “Knifed at random” accompanied by a collage of three photographs. The largest photograph was of a man’s face, while the other images were smaller and included a pixellated image of man being led away by police. The text below read “Leicester Square ‘knifeman’ who stabbed mother and daughter, 11, did not know them, police believed”. Users could then click through to read the full article in the usual fashion.

The IPSO found that the composite image and accompanying text on the home page gave the “misleading impression” that the man pictured prominently was the perpetrator of the attack. In fact, he was a security guard who had intervened and was hailed as a ‘hero’.

The publication argued that this was clarified in the text of the article itself, but the IPSO did not accept this as “the connection between the man pictured and the story was not explained on the [home] page.” A caption had originally been present, but it was removed when the photograph was enlarged “for editorial emphasis”.

The IPSO stated: “While the article to which readers could click through went on to identity the security guard and his relationship to events, this was not sufficient to rectify the misleading impression given by the homepage.”

Mail Online was required to publish a correction.

This complaint serves as a reminder that the press has a duty to take care with its online front pages, which now frequently combine images and headlines, by including any important context.

The ruling can be found here.

Trump saves TikTok: Influencing the influencers

President Trump will reverse the TikTok ban within hours of being sworn in as President of the United States, as he promises to find a solution for the 170 million TikTok users in the United States (US). The US ban officially came into force at midnight on 19 January 2025.

The US, and President Trump’s ‘new best friend’ Elon Musk, know a lot about the power of social media, but can we really expect TikTok to sell to a US company? The US played a game of chicken with TikTok and it didn’t flinch – shutting its US site down, rather than handing over control. With the potential of a foreign adversary having access to its population, and the mass market data TikTok controls, the US would prefer to trust one of its own with such power.

Social media is a powerful tool for influencing its users, and it is clear that the US would prefer to keep control of its influencers rather than allow the Chinese to wield such influence. The TikTok ban has highlighted a much bigger issue, which is the power of social media and mass market data sets. Can we trust social media platforms with such data, irrespective of where they are based? The need for proper regulation and governance is clear and this must be addressed. Even in the land of the free, who is guarding the gatekeepers?

Alleged ‘Smear Campaigns’ under the legal spotlight in the UK and USA

A recent UK judgment and a number of US court claims have referenced allegations of sophisticated ‘smear campaigns’ being conducted against the claimants by business or personal rivals.

Last week saw judgment on a preliminary issue in Marinakis v Karipidis & Ors*, a claim brought by the owner of Nottingham Forest Football Club who has sued a number of people and companies who he alleges have conducted a defamatory public relations campaign against him. It is said that this has involved the creation of websites, videos, social media posts, and even mobile advertising boards, to make serious allegations against him disguised as a ‘grassroots’ campaign by Nottingham Forest fans. The claim continues.

In unrelated disputes, a number of US celebrities have also recently alleged they are the target of ‘hostile’ campaigns by others, designed to damage their reputation, and have commenced legal proceedings in response. It has been reported that these campaigns involved widespread inauthentic social media postings, and other attempts to establish public narratives critical of the claimants.

One similarity between the UK and one US case is evidence obtained by claimants from Public Relations firms alleged to have been involved.

The legal risks of engaging in such campaigns are clearly obvious.

*Marinakis v Karipidis & Ors [2025] EWHC 13 (KB) (10 January 2025)