24 April 2023 , 23:01
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Bogus reviews and subscriptions traps will be outlawed under a clampdown of online rip-offs.
New legislation will be introduced today to clamp down on internet rip-offs, such as fake reviews that cheat customers and sneaky rolling subscriptions that cost Brits £1.6billion a year.
Firms will be forced to remind consumers when a free trial or an introductory offer is coming to an end - and make it easier for people to exit subscriptions.
The new Digital Markets, Competition and Consumer Bill will also hand beefed up powers to the Competition and Markets Authority (CMA) to directly enforce consumer law rather than go through lengthy court processes.
The watchdog will be able to impose penalties of up to 10% of global turnover on firms who break consumer law.
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Brits can end up forking out more due to 'subscription traps' (Getty Images/iStockphoto)Business and Trade Minister Kevin Hollinrake said: “Smartphones and online shopping have profoundly changed the landscape for businesses, consumers and the foundations of a modern thriving economy, which now lie in strong consumer choice, confidence and competition.
“From abuse of power by tech giants, to fake reviews, scams and rip-offs like being caught in a subscription trap - consumers deserve better."
Rocio Concha, Which? Director of Policy and Advocacy, said: “This bill is a pivotal step to make markets in the UK work better for consumers, businesses and support economic growth.
“Whether it’s fake reviews by dishonest businesses or people getting trapped in unwanted and costly subscriptions, our consumer protections are overdue an upgrade."
UKHospitality Chief Executive Kate Nicholls said: “Fake reviews do irreparable damage to businesses, offer consumers a misleading view of a business and devalue the efforts of honest customers leaving genuine feedback.
"This Bill will help to deliver fairness for both hospitality venues and their customers in this area, and we look forward to working with Government to achieve this.”
The measures will come into effect once the legislation has been approved by Parliament.