Digital Markets, Competition and Consumers Act 2024
... and why it matters to your business
The Digital Markets, Competition and Consumers Act 2024 (DMCC Act) is a landmark piece of legislation that aims to modernise UK consumer protection laws, tackle unfair market practices, and bring digital markets under greater regulatory scrutiny.
Passed in May 2024, this Act introduces sweeping changes designed to protect consumers and ensure fairer trading across both traditional and online markets. For the legal cannabis, CBD, and wellness industries – particularly those operating in e-commerce or with subscription-based models – this legislation is not just relevant, it's essential.
A quick overview: What is the DMCC Act?
The DMCC Act 2024 consolidates and updates existing consumer protection laws while giving regulators new powers to take action against companies engaging in misleading, unfair, or anti-competitive practices. Some of the key elements include:
- Direct enforcement powers for the Competition and Markets Authority (CMA), allowing it to impose fines without going through the courts.
- Stronger rules around subscription contracts, including clearer terms, reminders before renewals, and easier cancellation processes.
- New obligations for digital markets, especially those dominated by large online platforms, to prevent exploitation or anti-competitive behaviour.
- Crackdown on fake reviews, drip pricing, and misleading endorsements.
- Introduction of a Digital Markets Unit (DMU) with powers to regulate firms with “Strategic Market Status”.
Who does it affect?
The Act affects any business selling to UK consumers, regardless of whether the business is based in the UK or abroad. It applies across sectors, but is particularly impactful for:
- E-commerce brands and subscription services
- Online marketplaces and platforms
- Businesses using influencers, endorsements or reviews for marketing
- Companies operating loyalty programmes or offering promotional pricing
Put simply, if your business engages with consumers online, sells products or services on a recurring basis, or promotes through social media, you are affected.
How is the cannabis industry affected?
The cannabis and CBD industries must take the DMCC Act seriously. Many businesses in this space rely on digital platforms, email marketing, and recurring purchase models to drive sales. The Act introduces direct compliance risks that could result in fines of up to 10% of global turnover for serious breaches.
Here are some key risk areas for the sector:
1. Subscription products & Auto-renewals
CBD wellness products and supplements are often sold on a subscription basis. Under the DMCC Act, businesses must:
- Provide clear pre-contract information before a customer signs up.
- Send reminder notices before auto-renewal.
- Offer a simple, immediate cancellation method (e.g. a one-click cancel button).
Failure to meet these standards could be considered a misleading practice.
2. Marketing claims and endorsements
The Act strengthens the rules against misleading advertising, especially through:
- Influencer marketing (e.g. testimonials that do not reflect genuine experience).
- Unsubstantiated health or product claims.
- Fake or incentivised reviews.
Given the already tight restrictions around what CBD and cannabis companies can legally say, this adds another layer of scrutiny.
3. Drip pricing and Hidden fees
The CMA is cracking down on incomplete upfront pricing. If your business displays prices that don’t include all mandatory fees (like delivery or taxes), you could be in breach.
4. Customer loyalty schemes and Free trials
Many cannabis and wellness brands offer loyalty rewards or free trials. The DMCC Act demands full transparency around:
- Eligibility criteria
- Terms and conditions
- When payments will begin after trials end
Lack of clarity could lead to enforcement action.
Why now?
The DMCC Act represents a step-change in enforcement. Instead of relying on court proceedings, the CMA can now act quickly, making it easier for them to fine companies or demand changes. For cannabis businesses already navigating complex regulations and reputational risks, the cost of non-compliance just got higher.
What should you do next?
Here are some practical steps for cannabis sector businesses:
- Review your subscription models, cancellation processes, and customer communication timelines.
- Audit all marketing claims, particularly health-related or performance-based statements.
- Check your use of reviews and testimonials – they must be real and verifiable.
- Be transparent about pricing and promotions, avoiding ‘drip’ pricing tactics.
- Train staff – particularly in marketing, legal, and customer service roles – on the new requirements.
Final thoughts
The cannabis and CBD sectors are no strangers to evolving regulation – but the DMCC Act 2024 is different. It applies to everyone engaging with UK consumers, and the penalties for getting it wrong are steep. Compliance is no longer just about ticking boxes; it’s about creating clear, fair, and honest consumer relationships.
Now is the time to review your systems, update your policies, and ensure your digital presence stands up to scrutiny – before the CMA knocks on your door.
Published 30th March 2025
