The Digital Markets, Competition and Consumers Act 2024 (DMCCA) has introduced a range of changes to consumer and competition law, and in its aim to provide a level playing field for businesses, it has given the Competition and Markets Authority (CMA) new powers to directly enforce consumer law. This includes the provision of fines. It also introduces new banned practices including a ban of fake reviews.
What is the Digital Markets, Competition and Consumers Act (DMCCA)?
The DMCCA is a piece of legislation brought into UK law dealing with the regulatory landscape for digital markets, competition, and consumer protection. It replaces the Consumer Protection Regulations 2008 (CPRs), adding new banned practices and strengthening existing ones.
What are the CMAs new powers?
The CMA will now be able to decide whether consumer protection laws have been infringed (rather than litigating through the courts) and to tackle any breaches directly and proportionately, including through consumer redress and fines.
The CMA has published an ‘Approach to Consumer Protection’ document which outlines likely priority areas of enforcement and compliance activity. These include providing information to consumers that is objectively false, particularly in relation to the new banned practice relating to fake reviews.
Will the new banned practices impact my advertising?
While fake reviews have always been a breach of the PAGB Consumer Code, the DMCCA introduces an explicit ban on these. This includes writing, submitting, and commissioning another person to provide a fake review. While incentivising reviews is allowed, such as offering consumers a future discount, hiding the fact that a review may have been incentivised is prohibited. This should be disclosed, for example by labelling the review as an advert.
Members should ensure all testimonials remain genuine and retain evidence of this, as well as permission. Consideration must also be given to whether reviews are published in a misleading manner. Examples include removing negative reviews from a brand website or giving greater prominence to positive reviews. Regular monitoring for outdated reviews should also be employed.
The CMA has published a helpful guide on fake reviews here. For advice on implementing consumer reviews in advertising please contact the advertising team at copyclearance@pagb.co.uk.
