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11 September 2024

News: When Will The Digital Markets, Competition And Consumers Act 2024 Come Into Force?

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Global Advertising Lawyers Alliance (GALA)

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The Digital Markets, Competition and Consumers Act 2024 will be implemented in phases. Parts 1, 2, and 5 will begin by early 2025, focusing on competition regulations. Parts 3 and 4, covering consumer protection, will follow in April 2025, with subscription reforms starting in 2026.
United Kingdom Consumer Protection

A few weeks ago we wrote an update about the Digital Markets, Competition and Consumers Act 2024, and when we thought it might be coming into force. Today, 9 September, the government made a statement in Parliament to confirm how and when the high profile DMCC Act will come into force.

So, let's summarise the timetable:

What does the DMCC Act cover?

As a reminder:

  • Part 1 and 2 of the Act will establish a pro-competition regime for digital markets, and amend the wider competition regime.
  • Parts 3 and 4 strengthen the enforcement of consumer law and introduce new consumer protections, including tackling fake reviews and drip pricing, new rules for consumer saving schemes and introducing new rights relating to subscription contracts.
  • Part 5 contains miscellaneous measures such as dealing with investigative assistance to overseas regulators, disclosing information overseas, providing for a duty of expedition on the CMA and sectoral regulators, and giving the CMA new information gathering powers to monitor competition in the retail motor fuel sector in the UK.

So when does all this come into force?

December 2024 or January 2025: The government aims to commence Parts 1, 2 and 5 of the Act.

Deeper dive: Before that, the CMA must publish guidance setting out how it will carry out its functions and use its powers (it has been consulting on some of these issues). The Secretary of State for Business and Trade must approve CMA digital markets guidance. Also, secondary legislation will be laid before parliament. A commencement order will be made at least 28 days before the commencement date.

April 2025: The government expects to commence Parts 3 and 4 of the Act, which provide for the consumer enforcement regimes, and replace current consumer laws respectively. Until then, the tried and tested consumer laws in the Consumer Protection from Unfair Trading Regulations 2008 remain in effect.

Spring 2026: Reforms to subscription contracts and alternative dispute resolution will follow later, with subscriptions reforms not commencing before Spring 2026 at the earliest. These timelines follow commitments made in the previous Parliament, and the government says they also reflect the quickest possible delivery of the reforms, while ensuring that the necessary consultation and other steps can take place.

The government believes this staggered approach will strike a balance between introducing the benefits of the new Act as quickly as possible, while allowing businesses time to prepare.

Businesses still need to see the implementing legislation and guidance, but the picture has become a lot clearer with the dates. Watch this space for more updates.

The Government recognises the importance of implementing the Act as soon as possible so that businesses and consumers can reap its benefits. We also understand those affected by the Act need to know when its changes will come into effect. That is why the Government is publicly setting out its plans for implementation.

https://questions-statements.parliament.uk/written-statements/detail/2024-09-09/hcws74

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.

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