Debbie Heywood looks at key commercial and digital legislation pushed through before Parliament was prorogued for the general election and at what didn't make it.
What's the issue?
Rishi Sunak seemingly took everyone by surprise when he announced a general election for 4 July 2024. Traditionally, before Parliament is prorogued, there is a 'wash-up' period during which final-stage legislation can be rushed through. The wash-up period was unexpectedly short (especially given the length of the campaign period), so what made it onto the statute books?
What's the development?
The Automated Vehicles Act was passed to very little fanfare on Monday 20 May before the election was announced (as we discuss here). That still left some significant commercial and digital legislation in limbo.
On 23 May, Parliament passed the Digital Markets Competition and Consumers Bill and the Media Bill. Both received Royal Assent on 24 May 2024.
DMCC Act
What is now the Digital Markets Competition and Consumers Act 2024 (DMCC Act), constitutes a major reform of the UK competition regime and an attempt to tackle competition issues in big tech, as well as an update of the UK consumer protection framework.
The DMCC Act sets out a regulatory framework for tackling competition issues in big tech, including by:
- Placing the Digital Markets Unit on a statutory footing with new powers to regulate digital businesses with "strategic market status" and impose a wide range of "conduct requirements". These may include requiring them to provide greater choice and transparency to customers, particularly about their review systems, or to share data with consumers or competitors.
- Giving the DMU new enforcement powers. The DMU will be able to fine businesses up to 10% of their annual global turnover for non-compliance, and make senior managers personally responsible for ensuring compliance with the DMU's instructions.
The DMCC Act will also make other changes to the UK's consumer protection regime including by:
- Revoking, replacing and enhancing the Consumer Protection from Unfair Trading (CPUT) Regulations.
- Introducing new requirements around subscription contracts to give consumers upfront information, reminders about renewals, and to make it easier for them to terminate.
In a major change, the CMA will be able to take consumer protection enforcement action directly rather than having to apply to the courts to do so. With that comes additional enforcement powers, including to impose penalties for:
- breaching consumer protection laws – fines of up to 10% of annual global turnover for businesses or up to £300,000 for an individual
- breaching undertakings given to the CMA – penalties of up to 5% of annual global turnover or £150,000 for an individual, plus additional daily penalties for ongoing non-compliance
-
non-compliance with an information notice, concealing evidence or providing false information, with penalties of up to 1% of annual global turnover or up to £30,000 for ongoing non-compliance.
The vast majority of provisions must be brought in by secondary legislation. The CMA's enforcement regime is likely to commence within around six months. Plans for the new subscription rules were originally for the regime to apply in Spring 2026.
Media Act
The Media Act received Royal Assent on 24 May 2024. It makes provisions about public service television; about the sustainability of, and programme-making by, C4C; about the name, remit, powers, governance and audit of S4C; about the regulation of television selection services; about the regulation of on-demand programme services; about the regulation of radio services; about the regulation of radio selection services; for the repeal of the Crime and Courts Act 2013 s.40; for addressing deficiencies in broadcasting legislation arising from the withdrawal of the UK from the EU; and for connected purposes.
What didn't make it?
The Data Protection and Digital Information Bill was intended to reform the UK's data protection regime. The government placed considerable emphasis on 'simplifying' the EU-derived GDPR but the DPDI Bill did not make it onto the 'wash-up' list. While it was fairly advanced, it still had to go through amendment stage in the Lords and was probably too far away from enactment or too controversial to be pushed through enactment.
Other commercial legislation which failed includes:
- AI Bill (private members' bill)
- Consumer Pricing Bill (private members' bill)
In addition, the Criminal Justice Bill failed to pass which means that the offence of making a sexually explicit deepfake image has not been added to the statute books. The separate s66A Sexual Offences Act offence created by s187 of the Online Safety Act of sharing a sexually explicit deepfake image is in force.
What does this mean for you?
The Bills which failed could be re-introduced by the incoming government (see here for more). Labour (widely expected to win the election) was reported as being ready to re-introduce some of the legislation which hasn't gone through but there is no definitive list and it is not clear the DPDI Bill would be included. There have been suggestions that at least parts of it may be re-introduced although these are the sections which deal more with digital information and less with the UK GDPR and Data Protection Act. Other commentators suggest the Bill will be dropped in its entirety.
It's also worth noting that much recent legislation including the AV Act and the DMCC Act, depends on secondary legislation to take effect so the timetable for application is currently uncertain.
