Changes to consumer laws and B2C engagement take effect

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.

AUTHORS

Shayna-Radhika Patel Senior Associate

Shayna is a senior associate specialising in advertising and advises on a broad range of commercial and regulatory matters across the advertising industry.

Shayna is a senior associate specialising in advertising and advises on a broad range of commercial and regulatory matters across the advertising industry.

She has particular interest and expertise in advertising related agreements such as creative agency, media buying, brand sponsorships/partnerships, media measurement, affiliate network arrangements and digital media and adtech (including adtech vendor arrangements and programmatic advertising).

On the regulatory side, Shayna has particular experience advising on data protection and privacy matters in relation to marketing, adtech and digital media. She also advises on general advertising and consumer regulations (e.g. promotions and influencer marketing) as well as in relation to online safety including online safety regulation and the ICO’s Children’s Code.

Shayna has experience advising on the commercialisation and use of various technologies including AI, blockchain, the use of NFTs and the metaverse, particularly in the context of brand engagement, digital marketing and advertising.

Shayna acts for clients across the advertising industry, including agencies of various sizes, brands in a variety of sectors (including film and production, video games, fashion and luxury goods, and travel and leisure), adtech vendors and platforms, advertising trade bodies and media measurement companies.

Shayna studied law and criminology at Cardiff University graduating with first class honours.

Before joining Harbottle & Lewis, Shayna trained and qualified at CMS, working in the technology and media department and has experience of advising in both private practice and in-house having undertaken a number of secondments including at two leading FTSE100 companies, an adtech platform and an advertising trade body.

Shayna maintains CIPP/E certification and has completed the MRG Tools of the Trade course. She is also a committee member on the Society for Computers and Law (SCL’s) Digital Media Group Committee. Shayna is recognised as a ‘Key Lawyer’ in ‘Advertising and Marketing’ in The Legal 500 2024.

Andrew Terry Partner

Andrew is a partner with over 20 years’ experience in all areas of intellectual property, including copyright, trade mark and design right disputes and strategic IP advice, as well as regularly handling advertising, music, media and content related matters.

Andrew is a partner with over 20 years’ experience in all areas of intellectual property, including copyright, trade mark and design right disputes and strategic IP advice, as well as regularly handling advertising, music, media and content related matters.

Whilst Andrew has extensive experience in the High Court, Court of Appeal and IPEC, as a trusted advisor to his clients he is often co-ordinating their needs and facilitating wider work. To that end, he often advises on matters with a ‘brand’ focus, such as sponsorship, advertising and merchandising agreements and reputation management issues.  Andrew also has extensive experience of advising on and clearing TV and film content for global projects.

As well as acting for household name brands across key sectors, such as FMCG, retail, fashion and technology,  Andrew has worked with high profile talent in media and entertainment for many years, including major artists in the music industry.

Andrew has a strong reputation in the market and is described as “excellent” by The Legal 500. He was previously head of the IP and media team at Eversheds Sutherland, having been a partner for more than 10 years.

Sacha Wilson Partner

Sacha is a commercial and regulatory lawyer with particular expertise in advertising, digital and data privacy. He is head of the firm’s cross-departmental advertising practice.

Sacha is a commercial and regulatory lawyer with particular expertise in advertising, digital and data privacy. He is head of the firm’s cross-departmental advertising practice.

Sacha advises clients from a variety of sectors, including some of the world’s best known brands, agencies and platforms. He is ranked for advertising and digital media in both The Legal 500 and Chambers and Partners and is recognised as one of the UK’s leading advertising lawyers.

Sacha advises on a range of commercial transactions and has particular expertise in advertising-related agreements (such as creative agency, media planning and buying, production and brand partnerships). He is particularly well known for his expertise in digital marketing and adtech.

Sacha also has expertise in general advertising compliance (including prize promotions, native advertising and influencer marketing) as well as ecommerce and online consumer regulations.

Sacha also works within the firm’s retail and technology practices and regularly advises well-known retail brands on a range of retail-focused commercial agreements including distribution, licensing, and franchise agreements, as well as clients across a range of industries on tech focused agreements such as software development, SaaS, and IT services contracts.

In relation to data privacy, Sacha has advised on all the key compliance areas, and has worked with a large number of clients on their data protection compliance programmes. He has particular expertise in the data privacy aspects of marketing, adtech and digital media. He frequently advises on the compliance aspects of adtech vendor arrangements, programmatic advertising, and mobile apps.

Sacha also has expertise in the legal issues associated with AI, particularly in the context of advertising and marketing. He regularly advises clients on the privacy, IP, contractual and regulatory issues associated with the use and deployment of AI for a range of purposes in the advertising and marketing industries.