The latest legal, regulatory and other developments in the advertising and consumer adjacent spheres for Q4 2024.
ASA guidance for the quarter
The ASA has published guidance including on the advertising of the following this quarter:
Implementing regulations and guidance on HFSS product advertising issued
On 3 December 2024, the Advertising (Less Healthy Food Definitions and Exemptions) Regulations 2024 - which implement the new restrictions on the advertising of products high in fat, salt or sugar (HFSS) - were laid before parliament. The new restrictions apply from 1 October 2025. The government simultaneously published guidance to help businesses prepare for the restrictions, including examples of products that do and do not fall within scope. The guidelines will sit alongside guidance due to be issued by the ASA, the frontline regulator of the new restrictions.
UK government publishes progress report on Online Advertising Taskforce
On 2 December 2024, the UK government published an overview of the Online Advertising Taskforce and its progress to date, focusing on the work of the six industry-led working groups and their planned next steps. The Taskforce was set up to bring together government and the advertising sector to work in collaboration to address illegal harms and the protection of children in relation to online advertising.
UK government issues response on consumer law penalties under the DMCCA
On 29 November 2024, the Department of Business and Trade (DBT) published the government's response to its consultation on draft legislation to be made under the Digital Markets, Competition and Consumers Act 2024. The Act will give the Competition and Markets Authority (CMA) new powers to issue fines of up to 10% of a trader's global annual turnover for breaches of consumer protection legislation (see our article here). Some respondents to the consultation were concerned that the provisions allow the CMA to select the period immediately before the relevant accounting period (for calculating a penalty) if the turnover is higher. The DBT responded that there are appropriate safeguards in place for determining the correct period and that it will look at the facts of each case in turn. The CMA will also issue guidance on the correct approach.
EU Council adopts Regulation to address products made with forced labour
On 19 November 2024, the Council of the EU announced the formal adoption of a regulation prohibiting products made with forced labour on the EU market.
The EU Commission will create a database that identifies areas or products at risk of forced labour in order to support authorities assess possible breaches of the regulation. Both the EU Commission (for cases outside the EU) and authorities in member states (for cases in their territory) are able to initiate an investigation.
Final decisions to ban, withdraw or dispose of a product that has been identified as having been made with forced labour will be taken by the authority leading the investigation and will apply in all other member states. After the regulation has been signed by the President of the European Parliament and the President of the Council, it will be published in the Official Journal of the European Union, entering into force the day after its publication. The regulation will apply 3 years after the date of its entry into force.
Meanwhile, the UK Court of Appeal has ruled in a case which arguably raises the bar for supply chain monitoring in the UK
CMA publishes consumer law compliance advice for TRPs and individuals
On 12 November 2024, the Competition and Markets Authority published its consumer law compliance advice for businesses which focuses on Trader Recommendation Platforms (TRPs) and its response to the public consultation on the draft guidance held earlier this year.
TRPs are websites and apps such as Checkatrade and TrustATrader that allow consumers to connect with traders (ie builders, plumbers, and heating specialists). The advice aims to help TRPs comply with their legal obligations and sets out six principles for TRPs to follow that incorporates their obligations under the Consumer Protection from Unfair Trading Regulations 2008 (CPUT). The CMA has also published a shorter summary of the advice that focuses on the six principles and provides examples of what TRPs should and should not do, as well as further guidance for consumers when using TRPs.
UK government announces consultation on DMCCA subscription contracts regime
On 18 November 2024, the UK government announced a consultation on the implementation of a new subscription contracts regime under the Digital Markets, Competition and Consumers Act 2024 (DMCCA). While the DMCAA provides a framework of rules that govern subscription contracts, secondary legislation is necessary to detail how a subscription contracts regime will be implemented in practice. More on the regime here and on the DMCCA provisions here.
CMA announces dynamic pricing project
On 13 November 2024, the CMA announced that it had opened a project to consider how dynamic pricing is used across different sectors of the UK economy. The aim of the project is to gather views from businesses in different industries that use dynamic pricing and engage with stakeholders, such as consumer groups and regulators, to gather their views. Issues surrounding dynamic pricing were highlighted during the sale of Oasis concert tickets by Ticketmaster in September 2024 (more on that below). The dynamic pricing project will publish an update with its findings, which will inform the government's consideration of the issue.
EU Commission and CPC notify Temu of consumer protection breaches
On 8 November 2024, the EU Commission and the Consumer Protection Cooperation Network notified Temu of practices breaching EU consumer protection law which require remedial action. Highlighted practices include:
- Forced gamification (forcing consumers to access the marketplace while hiding essential information about the conditions of use linked to the rewards of the game)
- Missing and misleading information
Temu has one month to respond and explain how they will address these issues. If it fails to remedy the problems, national consumer protection authorities will be able to take enforcement measures.
The Commission notes that the General Product Safety Regulation comes into force on 13 December 2024 and will introduce new obligations on online marketplaces targeting consumers. The consumer proceedings against Temu complement the proceedings under the EU's Digital Services Act (see below).
DBT publishes study on online choice architecture
On 8 November 2024, the Department for Business and Trade (DBT) published a study examining potentially harmful Online Choice Architecture within the UK e-commerce sector, focusing specifically on online defaults. The study concluded that, while online defaults are prevalent and can significantly influence consumer choices, they generally do not mislead or harm consumers. Therefore, no immediate legislative intervention was seen to be needed to regulate their use.
However, the study recommends several forward-looking regulatory approaches including establishing standards for default settings, improving consumer awareness and guidance, and collaboration with government to develop OCA that enhance consumer welfare.
UK National Cyber Security Centre publishes guidance for tackling malvertising
On 6 November 2024, the National Cyber Security Centre (NCSC) published guidance for brands when choosing digital advertising partners and on countering malvertising. The guidance includes the following key recommendations for digital advertising businesses:
- Have strong KYC checks and monitor customers and adverts for suspicious behaviour, especially in areas know for money laundering and financial crimes.
- Put in place strong cyber security practices.
- Use data from reputable sources.
- Implement industry standards such as the TAG Certified Against Fraud and IAB UK Gold Standard.
- Deploy effective malvertising detection and removal services.
NSCS encourages brands to work with digital advertising businesses that adhere to and show compliance with the principles in the guidance.
CMA closes investigation into Unilever on environmental claims
On 6 November 2024, the Competition and Markets Authority (CMA) announced that it had closed its investigation into Unilever's compliance with consumer protection law (in particular, on the use of green claims). The CMA had been concerned that Unilever might be overstating how green certain products are through the use of vague and broad claims, unclear statements around recyclability, and ‘natural’ looking images and logos.
The CMA states that the decision to close the investigation was motivated by a range of factors, including changes Unilever has made to green claims on its products and the wider impact of the CMA's programme of work on addressing misleading green claims, such as the CMA's Green Claims Code, and the enforcement of it. The CMA describes the closure of the investigation into Unilever as a matter of administrative priority and noted that no conclusion had been reached on Unilever's compliance with consumer law.
Tobacco and Vapes Bill introduced to UK Parliament
On 5 November 2024, a new Tobacco and Vapes Bill was introduced to Parliament. The Bill looks to introduce restrictions on the sale and marketing of tobacco, vaping and other nicotine products. The government has also issued a call for evidence on standardised packaging for tobacco products.
ASA statement on enforcement against vaping advertisements
On 31 October 2024, the Advertising Standards Authority (ASA) released a statement on its review of e-cigarette ads.
It follows concerns raised by the ASA on vape ads appealing to under-18s, particularly ads which appear on social media. The ASA conducted a comprehensive review which included proactive investigations, tech-assisted monitoring and enforcement, outreach and stakeholder engagement, and providing advice and training to the industry.
Key actions and findings from the ASA review were as follows:
- Prevalence of paid vaping ads on social media was low, despite some paid for ads slipping through platforms' review systems.
- Problematic content was identified across various social media platforms from both influencers and businesses offering affiliated marketing. Digital marketing agencies were also found offering services directly to vaping companies.
- The ASA issued several rulings on vaping ads and two Enforcement Notices – the first to 150 vaping brands and the second to key players such as vaping brands, wholesalers and retailers.
- The ASA actively engaged with stakeholders through delivering industry webinars on advertising rules to business, advertisers and agencies and sharing updates with regulatory partners such as trade bodies and government officials.
CMA launches court action against Emma Sleep
On 25 October 2024, the Competition and Markets Authority (CMA) announced that it had initiated court proceedings against Emma Matratzen GmbH, Emma Sleep GmbH, Emma Sleep UK Ltd, and their directors. This action builds on the CMA's work monitoring sales practices and enforcement focused on online choice architecture. Further details on the CMA's action against the Emma Group can be found here and on similar actions in our article here.
The CMA can enforce consumer law through the courts under Part 8 of the Enterprise Act 2002. Additionally, from April 2025, the Digital Markets, Competition and Consumers Act 2024 will give the CMA the power to fine companies that breach consumer law up to 10% of their global turnover without having to go to court.
UK government announces disposable vapes ban in England
On 24 October 2024, the UK Government announced a ban on the sale and supply of disposable vapes in England. The ban was announced by the Circular Economy Minister, Mary Creagh, and echoes bans announced by the Scottish Government on 1 October 2024 and the Welsh Government on 22 October 2024.
The ban will take effect from 1 June 2025 through a statutory instrument, subject to parliamentary approval. This is intended to allow businesses time to sell remaining stock and prepare for the ban.
Introduction of Price Marking Amendment Order in UK
On 21 October 2024, the Price Marking (Amendment) Order (the Order) was made, addressing concerns about unit pricing that had been raised by the Competition and Markets Authority. The Order amends the 2004 Price Marking Order which was introduced to implement the Price Indication Directive and regulations on how prices for goods are shown to consumers.
The CMA had previously conducted a review of unit pricing in groceries, focusing on whether groceries were indicating the prices on in-store goods clearly and accurately. The CMA released a report in July 2023 which prompted the amendment of the 2004 Order.
Key features of the Order are:
- Indications of selling price, unit price, commission, conversion rate, change of rate and VAT coverage must be clearly legible and displayed using a clear font in a reasonable size.
- If a product is offered at more than one selling price (i.e. a standard price and a loyalty price), then each selling price and the unit price must be shown together with the conditions needed for each price to apply.
- If there is a general reduction, the reduced selling price and the reduced unit price must be shown together.
- Deposits will be excluded from the definitions of "selling price" and "unit price".
The order will apply in England, Wales and Scotland and will come into force on 1 October 2025.
UK government announces buy now, pay later consultation
On 17 October 2024, the Government announced a consultation on measures to bring Buy Now, Pay Later (BNPL) providers within the scope of consumer credit legislation. More on this in our article here.
The consultation will focus on consumer protection. The Government proposes amending the Consumer Credit Act 1974 to enable the Financial Conduct Authority (FCA) to apply rules on affordability to BNPL offerings. BNPL businesses will be required to check shoppers are able to afford repayments before offering them credit. They will also need to provide clear, accessible, and simple information about loan agreements in advance, so that shoppers can make informed decisions and understand risks.
The previous government had consulted on the issue after the FCA called for a change to the rules in 2021. However, legislation was not introduced before the general election. The FCA has released a statement welcoming the new consultation and detailing its involvement. The consultation ran until 29 November 2024, with results expected in early 2025.
Ofcom publishes statement of approach to implementing the Online Safety Act
On 17 October 2024, Ofcom published a statement on its approach to implementing the Online Safety Act (OSA). Ofcom's implementation of the OSA will occur in three phases, beginning December 2024 and ending early 2026:
- Phase One: covers illegal harms. This phase will begin in December 2024 with the publishing of Ofcom's Illegal Harms Statement and will end March 2025 when the enforcement of illegal harms safety duties begins.
- Phase Two: covers Child Safety and Protection. This phase will begin January 2025 and end July 2024 when the enforcement of child protection safety duties begins.
Ofcom has also published additional guidance, which covers compliance with requests for information and online service categorisation information notices, as well as a call for evidence in relation to researchers' access to information from regulated online services.
More on this in our article here.
Ofcom renews co-regulatory arrangements with ASA
On 14 October 2024, Ofcom announced the renewal of its co-regulatory arrangements with the Advertising Standards Authority (ASA) in relation to broadcast, on-demand programme service, and video-sharing platform advertising. These arrangements have been extended for ten years, until 31 October 2034, and follow a consultation conducted by Ofcom in June and July of this year.
EU Commission requests information from Temu under the Digital Services Act
On 11 October 2024, the EU Commission sent a request for information to Temu under the Digital Services Act.
The RFI asks Temu to provide information on mitigation measures against traders who sell illegal products on its online marketplace and requires Temu to provide the Commission with data and information related to the risks of the dissemination of illegal products and risks relating to consumer protection, public health, and users' wellbeing. Details about Temu's recommender systems and user data protection measures were also requested.
Based on Temu's response, the Commission will decide next steps. These may include formal proceedings under Article 66 of the DSA. Fines may also be imposed for incorrect or misleading information in response to the RFI.
Meanwhile, the Appeals Centre Europe (in Dublin) confirmed that it is certified to act as an out-of-court dispute settlement body for social media disputes under the DSA.
CAP and BACP statement on body image in advertising
On 10 October 2024, the Committee of Advertising Practice (CAP) and Broadcast Committee of Advertising Practice (BCAP) published their final statement on the review of potential harms caused by advertising related to body image.
The review found that there was currently no justification for new regulations or changes to the CAP Code or BCAP Code as factors driving body image concerns (such as cultural and social norms) fall outside the scope of advertising regulations. There was also insufficient evidence showing that digitally altered images in advertisements significantly impacted body image concerns more than editorial content. Additionally, requiring labels for digital alterations could lead to unintended consequences, such as increased pressure for cosmetic procedures.
Overall, CAP and BCAP found that the existing protections in the Advertising Codes sufficiently address misleading adverts, social irresponsibility, and harmful gender stereotypes. While there have been calls for greater diversity in bodies depicted in adverts, CAP and BACP reiterated that the Advertising Codes do not set out requirements for inclusion as such requirements may constrain freedom of expression.
UK government launches new Regulatory Innovation Office
On 8 October 2024, the UK Department for Science, Innovation and Technology announced the launch of a new Regulatory Innovation Office (RIO) that looks to reduce red tape around, and speed up access to, new technology.
The RIO will support regulators in updating regulations, speeding-up approvals, and ensuring smooth inter-regulatory collaboration. It will also continuously inform the Government of regulatory barriers to innovation and align regulatory priorities with broader governmental ambitions. Initially, the RIO will focus on four key areas: (i) engineering; (ii) space; (iii) artificial intelligence in healthcare; and (iv) connected autonomous technology. For more information, see our article here.
Global think tank launched to advance responsible advertising
On 4 October 2024, the ASA announced the launch of a new global think tank by the International Council for Advertising Self-Regulation (ICAS) which aims to enhance responsible advertising practices worldwide. The ASA will act as a founding sponsor.
The aim of the initiative is to bring together different international stakeholders, such as advertising regulatory organisations, global platforms, and academics, to foster collective participation and improve advertising practices. It aims to provide a platform for critical thinking, insights, and independent research to bring about effective self-regulation.
Initially, the global think tank will focus on sustainability in advertisements and the responsible use of AI in advertising. Additional topics will be addressed as it grows in size and scope.
EU Digital Fairness Act likely to be a priority for new EU Commission
On 4 October 2024, the EU Commission published a Working Document that presented the conclusions of the 'Fitness Check' on EU consumer law on digital fairness that was conducted in 2022.
The aim of the Fitness Check was to evaluate the level of consumer protection in the digital environment under the Unfair Commercial Practices Directive, the Consumer Rights Directive and the Unfair Contract Terms Directive. The report identified a number of issues, including dark patterns, addictive design, digital subscriptions, AI chatbots, unfair contractual terms, personalisation practices (eg targeted advertising), social media and influencer marketing.
As the new European Commission takes shape, it seems likely that a flagship project will be a new Digital Fairness Act to protect children and consumers online. Some of the issues identified by the Fitness Check are covered to a degree by the Digital Services Act, which a Digital Fairness Act would complement. The UK has recently updated its consumer protection legislation in the form of the Digital Markets Competition and Consumers Act 2024.
UK government decides against mandatory "not for EU" labelling on agri-foods
On 30 September 2024, the UK Government announced that it would not proceed with the proposed mandatory "not for EU" labelling on certain agri-food products in the UK, which was scheduled to take effect on 1 October 2024.
Following a review of consultation evidence and considering commitments from businesses to continue servicing Northern Ireland customers, the government decided against making such labelling compulsory across the UK. However, it will keep monitoring supplies to Northern Ireland supermarkets and retains the power to enforce "not for EU" labelling if deemed necessary in future.
It is important to note that while mandatory labelling is postponed, phase 2 of the Northern Ireland Retail Movement Scheme will proceed as planned. This includes extending "not for EU" labelling requirements to additional dairy products sold in Northern Ireland from 1 October 2024.
BCAP updates Code to cover advertising cryptos and investment products
On 27 September 2024, BCAP added a new rule 14.5.5 to its Code banning ads for fungible and transferable cryptoasset products being broadcast to mainstream, non-specialist audiences, whether via TV or radio. This was previously restricted under BCAP Code rule 14.5.4 when such products were not regulated by the FCA. However, BCAP added the new rule and made it more precise when the FCA took over the regulation of advertising of fungible and transferable cryptoassets in October 2023. Advertising of non-regulated cryptoassets will continue to be covered under rule 14.5.4.
EU Commission publishes FAQs on Ecodesign for Sustainable Products Regulation
On 27 September 2024, the European Commission published a set of Frequently Asked Questions to provide guidance and clarification on the Ecodesign for Sustainable Products Regulation ((EU) 2024/1781).
The Regulation, which came into force in July 2024, aims to reduce the negative life cycle environmental impacts of products and improve the functioning of the internal market. It establishes a framework for setting ecodesign requirements based on criteria such as durability, circularity, use of substances of concern, energy efficiency, and carbon footprint. More on the Regulation here.
The FAQs aim to assist stakeholders in understanding their obligations under the Regulation and ensure compliance. Key areas covered include:
- Scope: clarifying terms like "placed on the market" and "put into service", and explaining how the Regulation applies to products such as spare parts and components.
- Interaction with other EU Legislation: details on how this Regulation aligns with other EU laws concerning packaging waste, right to repair, and the EU ecolabel. It also addresses the transition from the repealed Ecodesign Directive 2009/125.
- Digital Product Passport: information about this new feature aimed at enhancing traceability and transparency.
ECJ ruling on price reduction claims
On 26 September 2024, the European Court of Justice issued a preliminary ruling on the application of the Price Indication Directive (1998/6/EU) (PID) in a case against Aldi on price reduction claims made in its advertising.
The ECJ held that a price reduction claim must be based on the lowest price applied during at least the 30 days preceding the reduction. Claims that do not compare the current price against the lowest price in this period do not comply with the PID.
The case centred on Article 6a of the PID, which mandates that any announcement of a price reduction must "indicate" the "prior price", defined as the lowest price applied by a business at least 30 days before the reduction. Aldi had advertised bananas and pineapples with current prices prominently displayed and higher, struck-through prices in smaller text, alongside percentage discounts and promotional statements. These reductions were not always based on the lowest prior price as required by Article 6a.
A consumer association challenged Aldi’s ads for misleading consumers by using price reductions not comparing to the lowest prior prices. The ECJ ruled that for any percentage or promotional statement to comply with Article 6a, it must be determined based on this "prior price". Simply mentioning, but not using, this prior price as the basis undermines the consumer protection objectives of encouraging informed choices and preventing misleading practices.
New ICC advertising and marketing communications code
On 19 September 2024, the International Chamber of Commerce released the 11th edition of its Advertising and Marketing Communications Code. This update is the first major revision in a decade, aiming to align the Code with modern marketing practices influenced by technological advancements. The latest update is focused on covering new technologies and current issues. It also features a checklist for marketers to review before launching campaigns.
The Code is not legally enforceable but aims to provide a global benchmark for ethical standards in advertising and marketing. Many of the Code's rules are echoed in the CAP Code.
Key changes to the Code cover:
- AI Guidelines: outlines responsibilities for marketers using algorithms and AI systems in their communications.
- Environmental Claims: updates standards for environmental claims.
- Influencer Marketing: influencer communications must be immediately identifiable as advertisements.
- Diversity & Stereotypes: encourages promotion of diversity and avoidance of objectification and stereotypes.
FCA sets out temporary measures for firms on "Naming and Marketing" Sustainability Rules
On 9 September 2024, the Financial Conduct Authority published a statement on its temporary flexibility measures for firms on "naming and marketing" sustainability rules.
Following the publication of the sustainability disclosure requirements (SDR) and investment labels regime on 28 November 2023, and its anti-greenwashing rule on 31 May 2024, the FCA advised that firms should now be taking all reasonable steps to ensure compliance with the "naming and marketing" and disclosure rules, which come into force from 2 December 2024. The FCA stated that it has provided and will continue to provide support to firms to help them meet the higher standards under the SDR.
The FCA is also offering limited temporary flexibility, until 17.00 on 2 April 2025, for firms to comply with the "naming and marketing" rules in relation to a sustainability product which is a UK authorised investment fund in exceptional circumstances. This flexibility will apply where the firm:
- has submitted a completed application for approval of amended disclosures in line with ESG 5.3.2R for that fund by 17.00 on 1 October 2024; and
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is currently using one or more of the terms "sustainable", "sustainability" or "impact" (or a variation of those terms) in the name of that fund and is intending either to use a label, or to change the name of that fund.
Where firms can comply with the rules without requiring the above flexibility, the FCA has advised that they should do so. The FCA also expects firms to comply with the rules as soon as they can, without waiting until 2 April 2025.
CMA issues new guidance on greenwashing for fashion retailers
On 18 September 2024, the Competition and Markets Authority announced new guidance to aid fashion retail businesses in complying with greenwashing obligations. The guidance applies to retailers, manufacturers and distributors, and provides practical tips to consider when making environmental claims about fashion products and related services like packaging and delivery.
Key recommendations include:
- Ensuring clarity and accuracy of claims without omitting critical information.
- Making clear if a claim is based on specific parts of a product's life cycle.
- Avoiding vague terms like "sustainable" or "eco-friendly" and using images in a misleading way.
- Setting out criteria used to determine items included in a green range.
The CMA also wrote to well-known fashion brands and reminded businesses that it will soon have enhanced enforcement powers under the Digital Markets, Competition and Consumers Act 2024. This legislation enables the regulator to impose fines of up to 10% of worldwide turnover for breaches of consumer law without having to go to court.
UK government responds to the HFSS advertising restrictions consultation
On 12 September 2024, the government published its response to a consultation on draft regulations which introduce new restrictions on advertising products high in fat, salt, or sugar (HFSS).
The HFSS restrictions prohibit TV services and Ofcom regulated on-demand programme services from advertising HFSS products between 5.30 am and 9.00 pm and introduce a ban on paid-for online adverts for these products aimed at UK users. The restrictions will take effect from 1 October 2025.
The Government's consultation response confirmed that:
- Food or drink SMEs exemption applies to businesses involved in the manufacture of food or drink with fewer than 250 employees.
- Brand advertising is not subject to these new restrictions.
- In-Scope products were products that fell within the categories in the schedule to the draft regulations and achieved a certain score on the nutrient profiling model. The Government is to provide further guidance on the categories.
- Audio-only online services are exempt from these restrictions. Further guidance will be provided on what an audio-only ad is.
The response also announced the Government's launch of a new consultation focused on how the restrictions apply to live IPTV (eg for FAST channels such as Freevee). The government proposed that IPTV channels on a regulated EPG would be subject to the broadcast regime, where channels appear simultaneously both on a regulated EPG and separately on non-regulated platforms they would only be regulated on the EPG, and unregulated IPTV channels would be subject to the online restrictions. This consultation closed on 10 October 2024.
The Government separately reaffirmed its commitment to banning the sale of high-caffeine energy drinks to individuals under the age of 16.
BEUC files complaint against video game companies for unfair practices under EU consumer law
On 12 September 2024, the Bureau Européen des Unions de Consommateurs (BEUC) published a statement that a complaint had been submitted to EU authorities regarding unfair practices by several leading video game companies under EU consumer protection law.
The key areas of BEUC's complaint focus on:
- Lack of price transparency: consumers are unable to see the real cost of digital products due to the use of premium in-game currencies.
- Use of unfair terms: gamers are frequently denied their consumer rights when using digital in-game currencies, often finding themselves bound by unfair terms favourable to developers.
- Preference for real currency: consumers prefer using real money over virtual currencies, which they find unnecessary and misleading.
The BEUC is calling for action from the EU Commission and the European Network of Consumer Authorities and improved enforcement of consumer law in the video game sector, advocating for future regulations. BEUC's criticism stretches to social media platforms and online marketplaces that use digital currency.
UK government outlines timetable for implementing the Digital Markets, Competition and Consumers Act 2024
On 9 September 2024, the Minister for Employment Rights, Competition and Markets issued a written statement to Parliament detailing the planned timetable for the implementation of the Digital Markets, Competition and Consumers Act 2024 (DMCCA).
The government plans to commence Parts 3 (consumer enforcement regimes) and Part 4, Chapter 1 (replacement of unfair trading regulations) in April 2025. Reforms to subscription contracts and alternative dispute resolution will follow later, not commencing before spring 2026.
The government and the CMA are also working closely to have both the secondary legislation and the guidance in place as soon as possible. Under the DMCCA, the Government will make secondary legislation and the Competition and Markets Authority (CMA) is required to publish guidance on its new functions and powers (which will be approved by the Secretary of State).
CMA launches Ticketmaster investigation
On 5 September 2024, the Competition and Markets Authority launched an investigation into the sale of Oasis concert tickets by Ticketmaster and the use of dynamic pricing. A call for evidence has been made to consumers and the CMA will be investigating issues including whether:
- Ticketmaster has engaged in unfair commercial practices in breach of the Consumer Protection from Unfair Trading Regulations 2008.
- People were given clear and timely information explaining dynamic pricing and including the amount they would pay for any tickets purchased.
The CMA will be gathering evidence from a variety of sources including consumers, event organisers and the band's management.
The CMA also welcomed the government's announcement last week that it would consult on measures to provide stronger consumer protections in the ticketing sector. In a letter to business and culture ministers, the CMA said that it had particular concerns with the secondary ticketing market and the unlawful bulk-purchase of tickets which were later re-sold at inflated prices. The CMA pointed to its previous actions and recommendations in this area, urging the government to act on recommendations made in 2021.
Which? raises concerns over misleading loyalty discounts in UK retail sector
On 22 August 2024, Which? published a report on its research into loyalty discount schemes run by major UK supermarkets and retailers. The report indicates concerns that discounts offered to loyalty scheme members may be misleading, as the non-member prices used to calculate these discounts are often not genuine.
The report gives examples of potentially misleading discounts and calls for changes to relevant guidance. The Chartered Trading Standards Institute has welcomed the report and is considering reviewing its Guidance for Traders on Pricing Practices to address these loyalty schemes. The Competition and Markets Authority launched a review of supermarket loyalty pricing in January 2024. On 27 November 2024, the CMA published its final report.
