Under new consumer protection law, the Competition and Markets Authority (CMA) is set to tackle fake reviews and hidden prices.

The Digital Markets, Competition and Consumers Act 2024 (DMCCA) has been introduced to help the CMA safeguard consumer interests while enhancing trust – to support spending and adoption of new products and services.

In the first 12 months, the CMA will target behaviour which includes: aggressive sales that prey on vulnerable consumers, fees hidden until late in the buying process, objectively false information given to consumers, unfair and unbalanced contract terms, as well as drip pricing and fake reviews.

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Outlining its immediate next steps, the CMA reports it will open its first enforcement cases under the new regime, focusing on “more egregious” breaches of the law.

It will work with stakeholders to understand what issues most require consumer law advice, set out how businesses can bring forward evidence of competitors which are potentially infringing the law and explore opportunities for businesses to get advice from the CMA.

The CMA and UK government published a joint statement, reinforcing the CMA’s intended approach and the role of robust consumer protection.

Chief executive of the CMA Sarah Cardell  said: “Consumers deserve to know that the CMA has their back; and fair-dealing businesses looking to grow and invest deserve to know that their competitors are playing by the same rules.

“We will use the new regime to strengthen the trust and confidence of consumers and businesses – supporting economic growth and incentivising good corporate practice.

“Most businesses work hard to serve their customers and do the right thing.

“We recognise the importance, particularly for small businesses, of any new rules being clear and proportionate to comply with – and that this is a period of change when they may need help to understand their legal obligations.

“We’re working hard to support them with that and keep burdens to a minimum – through accessible guidance and communications, as well as direct engagement – alongside listening and responding to feedback.

Minister for Employment Rights, Competition and Markets, Justin Madders commented:  “These measures mean consumers can confidently make purchases knowing they are protected against fake reviews and dripped pricing.

“These changes will give consumers more power and control over their hard-earned cash, as well as help to establish a level playing field by deterring bad actors that undercut compliant businesses, helping to deliver economic stability as part of our Plan for Change.

“The DMCCA includes an explicit ban on the posting and commissioning of fake reviews – which has been added to the banned practices list.

“The CMA has previously taken action in this area and will be focused on ensuring compliance with the new provisions.

“The DMCCA also updates the law on pricing information businesses must show to customers. This includes a ban on ‘drip pricing’ – where shoppers are shown an initial price for a product, but more fees are added (‘dripped’) as they proceed with their purchase.”

The CMA has issued guidance for businesses on how to comply with aspects of the law, already well established before enforcing new provisions.

Following feedback, the CMA has said it will consult further on newer aspects which have created some uncertainty – such as fixed-term periodic contracts – with the aim of publishing final guidance in the autumn.