Significant new consumer protection measures have officially taken effect across the UK, introducing a ban on fake online reviews and compelling businesses to display the full price of goods and services upfront. These changes, part of the broader Digital Markets, Competition and Consumers Act 2024, are designed to protect shoppers from deceptive practices and ensure greater transparency in online and offline transactions.
Under the new rules, businesses are prohibited from publishing or commissioning fake reviews, as well as from manipulating genuine reviews to present a misleading impression. This includes practices like suppressing negative feedback or paying for positive endorsements without clear disclosure. The Competition and Markets Authority (CMA) will have enhanced powers to enforce these regulations, with potential fines for non-compliant companies.
Another key aspect of the legislation addresses 'drip pricing', a practice where additional mandatory fees are incrementally added during the purchase process, leading to a higher final price than initially advertised. Businesses must now include all compulsory costs, such as booking fees or service charges, in the headline price displayed to consumers from the outset. This aims to eliminate hidden charges and allow consumers to make more informed purchasing decisions.
These reforms also build upon existing consumer rights legislation, notably the Consumer Rights Act 2015, extending protections to digital content and services. This means consumers will have clearer rights regarding faulty digital products, such as streaming services, e-books, and apps, bringing them more in line with traditional goods.
The Government has stated that these measures are crucial for fostering a fairer marketplace, especially given the increasing reliance on online shopping and digital services. The Department for Business and Trade has emphasised the importance of creating a level playing field for honest businesses while safeguarding consumers from exploitation. This move is expected to be welcomed by consumer advocacy groups who have long campaigned against these misleading practices.
The Labour Party has previously called for stronger consumer protections and is likely to support these measures, while also scrutinising their enforcement. Shadow Ministers have highlighted the need for robust action against businesses that seek to circumvent the rules, ensuring that the new laws deliver tangible benefits for everyday families struggling with the cost of living.