If you're selling products online – whether you're running a print-on-demand business, creating personalised gifts, or managing an e-commerce store – there are crucial new consumer protection laws you need to know about right now.

The Digital Markets, Competition and Consumers Act (DMCCA) has rolled out significant changes that affect how online businesses operate, particularly around pricing transparency, customer reviews, and subscription services. These aren't just guidelines – they're legal requirements with serious penalties for non-compliance.

Here's everything you need to know to keep your online business compliant and protect yourself from potential fines.

What Is the Digital Markets, Competition and Consumers Act?

The DMCCA became law in May 2024 and is designed to protect consumers in our increasingly digital marketplace. While much of the legislation targets large digital platforms, the consumer protection elements apply to businesses of all sizes – including small online sellers.

If you have an online shop, use Shopify, sell through marketplaces, or even just have a website for your brick-and-mortar business, these regulations affect you.

Timeline of Changes

The DMCCA has been introduced in phases:

·         May 2024: The Act became law

·         April 2025: Regulations on fake reviews, drip pricing, and consumer savings schemes came into force

·         Spring 2026: New subscription contract rules expected to be enforced

This means some of these requirements are already in effect – and you need to be compliant now.

Four Critical Changes for Online Sellers

1. Fake Online Reviews Are Now Banned

Customer reviews can make or break an online business, which is why the Competition and Markets Authority (CMA) is cracking down hard on misleading testimonials.

What's now illegal:

·         Posting fake reviews or paying for positive reviews

·         Commissioning or hosting fake customer testimonials

·         Selectively publishing only positive reviews while hiding negative ones

·         Allowing misleading reviews to remain on your website or social media

What you need to do: You're now responsible for ensuring all reviews on your platforms are genuine. Regularly monitor your website, social media channels, and any third-party review platforms you use. If you spot suspicious or fake reviews, remove them immediately.

Status: This law came into force in April 2025.

2. Drip Pricing Is No Longer Legal

Drip pricing is when you advertise a lower price upfront, then add fees, charges, and taxes as customers move through the checkout process. Research shows these hidden fees cost UK consumers £2.2 billion every year.

Common examples of drip pricing:

·         Adding shipping fees only at checkout

·         Surprise payment processing fees

·         Booking fees that appear at the final step

·         Additional charges for customisation or personalisation revealed late in the process

What you need to do: Display the total price – including all fees, taxes, and mandatory charges – upfront. If certain costs can't be calculated in advance (like variable shipping based on location), you must clearly inform customers that additional fees will apply before they start the purchase process.

Review your entire checkout flow. Make sure every price displayed is the actual price customers will pay, or that you've clearly stated what additional costs may be added.

Status: This law came into force in April 2025.

3. Protecting Consumer Savings Schemes

If you operate any kind of payment plan where customers pay in instalments before receiving goods – particularly popular for seasonal products like Christmas items – you now need proper insurance protection.

Previously, customers risked losing their money if a business became insolvent before delivering the goods. The new law requires businesses running these schemes to have appropriate insurance to protect customer payments.

What you need to do: If you offer layaway plans, Christmas savings schemes, or any similar payment structure, ensure you have the proper insurance coverage in place to protect customer funds.

Status: This law came into force in April 2025.

4. Clamping Down on Subscription Traps

Subscription models are excellent for customer retention and predictable revenue, but they've also been a source of consumer frustration when it comes to unexpected renewals and difficult cancellation processes.

New requirements for subscription services:

·         Provide clear reminder notifications before a subscription renews

·         Make cancellation as easy as signing up – no hidden cancel buttons or complicated processes

·         Extend the 14-day cooling-off period to apply to contract renewals, not just new subscriptions

·         Give customers 14 days after renewal to cancel with a full refund

·         Be transparent about auto-renewal terms from the start

What you need to do: Review your entire subscription process. Make sure renewal reminders are sent well in advance, cancellation is straightforward, and all terms are crystal clear. Even though full enforcement isn't until spring 2026, implementing these practices now builds trust and protects you from future compliance issues.

Status: Expected to come into force in spring 2026.

What Are the Penalties for Non-Compliance?

This isn't just guidance – it's the law. The CMA has been given enhanced enforcement powers, and businesses found breaking these consumer protection regulations can be fined up to 10% of their global turnover.

For small businesses, even a fraction of that penalty could be devastating. Compliance isn't optional.

Action Steps: What to Do Right Now

Don't wait until you receive a warning or complaint. Here's what you should do immediately:

1. Audit Your Pricing Strategy

·         Review every product page on your website

·         Check your checkout process from start to finish

·         Ensure all mandatory fees are included in displayed prices

·         Add clear notices about any variable costs that can't be calculated upfront

2. Review All Online Content

·         Check your website for any testimonials or reviews

·         Audit your social media channels

·         Review any paid advertising for pricing accuracy

·         Remove or correct any misleading information

3. Examine Your Review Management

·         Implement a process for monitoring reviews regularly

·         Create a policy for handling suspicious reviews

·         Ensure you're not selectively publishing only positive feedback

·         Document your review verification process

4. Assess Subscription Services

·         Map out your entire subscription customer journey

·         Test the cancellation process yourself – is it genuinely easy?

·         Set up automated renewal reminders

·         Update your terms and conditions to reflect the 14-day renewal cooling-off period

·         Make auto-renewal terms prominent and clear

5. Check Insurance Coverage

·         If you operate payment plans or savings schemes, verify you have appropriate insurance

·         Consider legal expenses insurance for access to professional advice

·         Keep documentation of all compliance measures you've implemented

Why This Matters for Your Business

Beyond avoiding penalties, compliance with these new laws actually benefits your business:

·         Builds trust: Transparent pricing and genuine reviews create confidence with customers

·         Reduces disputes: Clear terms mean fewer misunderstandings and chargebacks

·         Improves retention: Fair subscription practices lead to happier, longer-term customers

·         Competitive advantage: Demonstrating compliance sets you apart from less scrupulous competitors

Additional Consumer Rights Laws to Remember

The DMCCA works alongside other important legislation that online sellers need to follow:

·         Consumer Rights Act 2015: Covers product quality, returns, and refunds

·         Consumer Protection Act: Protects consumers from unfair trading practices

·         Distance Selling Regulations: Specific rules for online and remote sales

Make sure you're familiar with all relevant consumer protection legislation, not just the new DMCCA changes.

Where to Get Help

If you're unsure about any aspect of compliance:

·         Check the full legislation on the UK government website

·         Visit Business Companion for free legal guidance backed by the government

·         Consider legal expenses insurance that includes access to professional legal advice

·         Consult with a solicitor who specialises in e-commerce and consumer law

Don't guess when it comes to legal compliance – the penalties are too severe, and the rules too important.

Final Thoughts

The Digital Markets, Competition and Consumers Act represents a significant shift in how online businesses must operate. While the changes might seem daunting, they're ultimately designed to create a fairer, more transparent marketplace that benefits both consumers and honest businesses.

Take the time now to review your pricing, marketing, and customer processes. Make the necessary changes to ensure full compliance. Not only will you avoid potentially devastating fines, but you'll also build a more trustworthy, customer-friendly business that stands out in an increasingly competitive online marketplace.

The rules are clear, the timeline is set, and the penalties are serious. Make compliance a priority today – your business depends on it.

This article is for informational purposes only and does not constitute legal advice. Always consult with a qualified legal professional for guidance specific to your business situation.