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Now that the DMCC Act has had a few months to bed in, what can we expect from the CMA in the coming months? Emma Cochrane, Acting Executive Director of Consumer Protection at the CMA, gave us a few hints in a recent blog post.
The CMA is focused on the following three priority areas, to ensure consumers:
- can shop online with confidence,
- get clear, accurate and complete pricing information, and
- can exercise their legal rights when things go wrong.
Since the Act came into force, the CMA has done the following:
- taken action to improve compliance with new rules on fake reviews;
- obtained undertakings in the Amazon and Ticketmaster cases (although it's worth noting that these cases opened before the CMA obtained its new powers under the Act); and
- continued monitoring of compliance with consumer law across the economy, using its information gathering powers under the Act.
The CMA has also been taking a very close look at fake reviews, as well as issuing guidance on how to make complaints to the CMA, and working on clearer guidance (eg on price transparency).
So what's coming?
With all this in mind, what can we expect from the CMA in the coming months?
A key headline is that it is refreshing its guidance about unfair contract terms.
It will also publish the final price transparency guidance in the Autumn and more generally, make its guidance easier to find and follow.
It has also been using its information powers to gather information about potential enforcement cases and, spoiler alert, these cases are likely to deal with misleading online choice architecture and drip pricing (these are examples, so there may be enforcement cases in other areas such as fake reviews).
The CMA will carry on gathering evidence directly from businesses where it has concerns consumer law isn't being followed. It will consider the best course of action, e.g. an advisory letter, continuing to monitor the business in question, or opening a case.
Respond to information "requests"!
The CMA emphasises that businesses should engage with it honestly and fully if they do receive information requests, as not complying without a reasonable excuse may result in fines of up to 1% of annual global turnover.
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