ARTICLE
28 March 2025

Drip Pricing And Fake Reviews: Updates To The ASA's Approach Reflects Consumer Law Developments

LS
Lewis Silkin

Contributor

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Back in December 2024, CAP and BCAP consulted on the implications of the unfair commercial practices (UCP) provisions in Chapter 1 of Part 4 of the Digital Markets, Competition and Consumers Act 2024.
United Kingdom Consumer Protection

Back in December 2024, CAP and BCAP consulted on the implications of the unfair commercial practices (UCP) provisions in Chapter 1 of Part 4 of the Digital Markets, Competition and Consumers Act 2024.

From 6 April 2025, the DMCC Aact replaces and updates the Consumer Protection from Unfair Trading Regulations 2008. Therefore, until the review of the CAP and BCAP Codes is completed, CAP and BCAP are advising advertisers to refer to the UCP provisions when preparing ads. During this time, the ASA will have appropriate regard to the UCP provisions when applying the rules affected.

The CMA has made a statement about its consumer enforcement regime in relation to the UCP provisions and said that it is going to reconsult on its guidance about drip pricing later this year. It is due to publish more general UCP guidance by 6 April.

The ASA will have regard to that guidance. In addition, the ASA will only take enforcement action, in relation to drip pricing issues, against ads that clearly breach the rules and do not engage aspects of drip pricing that fall within the scope of the CMA's re-consultation, until the CMA publishes its final guidance on those aspects.

In relation to new rules on fake reviews, and in line with the CMA's approach, for three months from 6 April, the ASA will focus on supporting businesses with their compliance efforts, where appropriate, rather than enforcement. However, the ASA will continue to apply its existing rules on testimonials and endorsements.

The update from CAP and BCAP is welcome, as is the confirmation that the ASA will follow the CMA's lead on enforcement, so traders can expect a consistent approach.

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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