This Bill will allow the CMA to directly enforce consumer law and impose fines on non-compliant big tech firms of up to 10% of their global turnover.

The Digital Markets Unit (DMU) within the CMA will be able to tackle the root causes of competition issues in digital markets by carrying out targeted interventions, by opening up new paths for start-ups or smaller firms that have previously struggled to grow and compete in these markets.

The Bill also looks to address “subscription traps” which make it difficult for consumers to exit contracts. Under new rules, businesses must:

• Provide clearer information to consumers before they enter a subscription contract
  
• Issue a reminder to consumers that a free trial or low-cost introductory offer is coming to an end, and a reminder before a contract auto-renews onto a new term
  
• Ensure consumers can exit a contract in a straightforward, cost-effective, and timely way
  

The Bill had its First Reading this week, which is a formal process to introduce legislation to Parliament. The next stage for the Bill is the Second Reading Debate, where MPs will exchange views on the broad principles of the Bill in Parliament. A date is yet to be announced for this.

The PPA is working with other trade bodies to ensure this Bill is successful in its journey through Parliament and is not compromised in a way that would negatively impact PPA members.

If you have any questions or wish to discuss this further with our public affairs team, please contact Eilidh.wilson@ppa.co.uk 

You can read the Bill here.