LEGAL
By Jay Barnett, Associate Solicitor at DMH Stallard
THE CONSUMER POWER SHIFT – CMA reforms on the horizon The Government has proposed reforms to enhance consumer rights and the way those rights are enforced. The proposals, which were out for consultation until October 1st 2021 if implemented in their current form, will have a significant impact on both businesses and consumers, much in the same way GDPR hit businesses back in May 2018. In this article, we look at what those proposals are, and what businesses should consider doing now.
THE ROLE OF THE CMA A key reform currently on the table, is to increase the Competition and Markets Authority’s (CMA) reach, whereby it could be allowed to: n fine businesses up to 10% of their global turnover for infringing consumer law; n levy civil fines for businesses which mislead or don’t cooperate with the CMA – including personal liability for directors/owners; and
n l evy fines itself – this is a big one as currently it has to bring a claim and ask the courts to impose a fine where wrong-doing is found. The reforms as proposed would place the CMA at the frontline of consumer-related issues, with extensive powers over businesses to ensure compliance as well as overseeing a streamlined penalty process: the CMA may become the consumers’ biggest weapon. CONSUMER POLICY REFORMS In addition to the CMA’s proposed extra powers, the Government wants to introduce additional consumer protection; this flows from the increased trend in online shopping during the pandemic. Additional measures may include: nP re-contract Information: Help to avoid consumers falling into ‘traps’, such as unreasonable minimum contract terms, auto-renewals and unfair minimum notice periods for cancellation. Consumers should also expect to receive clear, pre-contract information, prior to purchasing a product or service.
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