Contract Law Update: The Digital Markets, Competition and Consumers Act 2024

teachlawhub
Jan 9
3 min read

In this blog post, we will explore the Digital Markets, Competition and Consumers Act 2024 and explain how it has updated the law on unfair commercial practices. This is an important development as it modernises consumer protection to reflect how contracts are now formed and performed in a modern digital world.

The Act received Royal Assent in April 2024 and came into force on 6 April 2025. It represents the most significant reform of consumer protection law in over a decade.

The Law Before the Digital Markets, Competition and Consumers Act 2024

Before 2024, consumer protection against unfair trading was mainly governed by two key pieces of legislation:

Consumer Protection from Unfair Trading Regulations 2008 (CPRs)

These regulations:

Banned misleading commercial practices (such as false information or deceptive advertising)
Banned aggressive commercial practices (such as harassment or undue pressure on consumers)

Consumer Protection (Amendment) Regulations 2014

These amendments strengthened consumer rights by:

Introducing a right to claim compensation where consumers suffered loss because of misleading or aggressive practices

Together, these regulations formed the backbone of consumer protection law. However, they were increasingly criticised for being outdated, particularly in relation to online marketplaces, subscription services, and digital advertising.

What Does the Digital Markets, Competition and Consumers Act 2024 Do?

The Digital Markets, Competition and Consumers Act 2024 keeps the core protections from earlier regulations but updates and strengthens them to reflect modern consumer behaviour.

The Digital Markets, Competition and Consumers Act 2024:

Continues to prohibit misleading and aggressive practices.
Places clear responsibility upon traders to provide transparent and comprehensive pricing information.
Modernises the law to deal with online and digital trading practices.
Gives the Competition and Markets Authority (CMA) much stronger enforcement powers.

What’s New in the Digital Markets, Competition and Consumers Act 2024?

1. Banning Fake Reviews and Hidden Fees

One of the most significant updates is the crackdown on misleading online practices.

The Digital Markets, Competition and Consumers Act 2024:

Bans fake or manipulated online reviews, including reviews written by the trader themselves or paid for reviews that are not clearly identified.
Requires full price transparency, tackling the practice known as drip pricing.

Drip pricing occurs when a consumer is shown an initial price, but extra fees (such as booking fees or admin charges) are only revealed at the checkout stage. Under the Digital Markets, Competition and Consumers Act 2024, this practice is now unlawful.

TeachLaw tip: Fake reviews and drip pricing are strong examples of misleading actions under consumer protection law.

2. Tighter Rules on Subscription Traps

The Digital Markets, Competition and Consumers Act 2024 introduces clear protections for consumers entering subscription contracts, such as:

Streaming services.
Apps.
Online memberships.

Businesses must now:

Send clear reminders before a subscription renews.
Make cancellation easy and accessible, without unnecessary obstacles.

This is designed to prevent so called subscription traps, where consumers are locked into contracts that they did not realise were ongoing or struggle to cancel.

TeachLaw tip: Subscription traps link closely to unfair terms and unfair practices in contract law.

3. Stronger Enforcement Powers for the CMA

A major weakness of the old system was enforcement. Under the Digital Markets, Competition and Consumers Act 2024, the Competition and Markets Authority (CMA) now has far stronger powers.

The CMA can:

Directly fine companies up to 10% of their global turnover for breaches of consumer protection law.
Enforce consumer law without needing to go to court (previously this was not possible), awarding damages for financial harm from unfair practices

This removes the need for lengthy court action and makes enforcement faster and more effective.

Why this matters: The threat of large fines is intended to deter businesses from engaging in unfair practices in the first place.

Comparing the 2008/2014 Regulations with the 2024 Act

Feature	2008 CPRs / 2014 Amendment	Digital Markets, Competition and Consumers Act 2024
Scope	Focus on misleading/aggressive practices	Includes digital practices, online reviews, subscriptions
Enforcement	Mostly court-based	CMA can fine businesses directly

Why Is This Important for Contract Law Students?

The Digital Markets, Competition and Consumers Act 2024 shows how contract law and consumer protection evolve in response to social and technological change.

The Digital Markets, Competition and Consumers Act 2024 represents a major step forward in protecting consumers from unfair practices, particularly in digital and online markets. By banning fake reviews, tackling hidden fees, regulating subscriptions, and strengthening enforcement, the Act ensures that consumer contract law remains effective and relevant.

The TeachLaw Contract Revision Guide contains this key update and is available for purchase below.

Click below to download your free TeachLaw student activity pack.