The Digital Markets, Competition and Consumers Act 2024 (DMCC) became law on 24 May 2024. It was one of the last pieces of legislation to go through under the 2022 – 2024 Sunak Conservative government during the 'wash up' period prior to the dissolution of Parliament ahead of the general election.
The DMCC is expected to come into force in autumn and the Competition and Markets Authority (CMA) are conducting consultation on draft guidance.
There are key provisions, particularly in relation to the consumer booking journey, that tourism providers need to be aware of.
#1 – Drip pricing and hidden fees
Drip pricing is when an initial price is advertised to the consumer and additional fees/charges are incrementally disclosed, or 'dripped' along the booking journey, resulting in a higher checkout price. These fees are hidden to the consumer when they see the initial price. The DMCC prevents drip pricing and hidden fees, requiring all unavoidable fees to be presented upfront.
#2 – Fake reviews
The DMCC prevents the publication of fake consumer reviews, review that are false or misleading and review that do don't make it clear that the consumer has been incentivised to leave this review.
#3 – Subscription traps
Under the DMCC, reminders need to be sent to consumer when free subscription trials end, to ensure that they are not 'trapped' in a subscription without meaning to be.
#4 – Bolstered enforcement powers
The CMA have increased powers under the DMCC to enforce consumer protection law. This includes the ability to issue enforcement notices and fines.
#5 – Influencer marketing regulations
The bolstered enforcement powers of the CMA mentioned above also impact the influencer marketing industry. The CMA require an influencer to declare where there has been a payment, incentivisation or reward, including gifts of products or services. This impacts influencers, brands and influencer agencies.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.