Digital Markets, Competition and Consumers Bill introduced to crack down on unfair business practices online

The government has set out new legislation to strengthen consumer protections when using and purchasing goods and services online.

The Digital Markets, Competition and Consumers (DMCC) Bill, introduced to Parliament on 25th April, will enhance the role of the UK’s Competition and Markets Authority to crack down on unfair business practices online. The move aims to boost competition in digital markets, currently dominated by a small number of major firms to ensure fairness for consumers.

Introduction of the Bill adds detail to plans to toughen consumer protections that were first set out in April last year.

Additional protections for consumers shopping online will also be included in the Bill, including stricter rules for subscription services that make it easier for people to opt out.

Business and Trade Minister Kevin Hollinrake said:

“Smartphones and online shopping have profoundly changed the landscape for businesses, consumers and the foundations of a modern thriving economy, which now lie in strong consumer choice, confidence and competition.

“From abuse of power by tech giants, to fake reviews, scams and rip-offs like being caught in a subscription trap – consumers deserve better. The new laws we’re delivering today will empower the CMA to directly enforce consumer law, strengthen competition in digital markets and ensure that people across the country keep hold of their hard-earned cash.”

The CMA has welcomed the planned changes to update consumer protections for the digital economy and bolster its existing Digital Markets Unit.

Sarah Cardell, Chief Executive of the CMA, said:

“The new powers in this bill help the CMA take swift, decisive action to tackle rip offs, protecting consumers whether they are shopping online or on the high street. The new fining powers will provide an important deterrent to businesses seeking to take advantage of people while also ensuring fair dealing businesses can thrive.

“The bill will also strengthen the Digital Markets Unit, helping to ensure digital markets remain competitive and continue to benefit people, business, and the UK economy. We welcome its introduction to parliament and look forward to it progressing.”