{"id":34280,"date":"2023-04-25T11:41:04","date_gmt":"2023-04-25T10:41:04","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=34280"},"modified":"2023-04-25T11:41:04","modified_gmt":"2023-04-25T10:41:04","slug":"new-bill-to-boost-consumer-protection-on-uk-broadband-and-mobile","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/04\/new-bill-to-boost-consumer-protection-on-uk-broadband-and-mobile.html","title":{"rendered":"New Bill to Boost Consumer Protection on UK Broadband and Mobile"},"content":{"rendered":"<p>The Government will today introduce their new Digital Markets, Competition and Consumer Bill (DMCCB), which among other things also promises several new protection measures that could benefit customers of broadband ISPs and mobile operators (e.g. clearer contract information and making it easier to exit a contract).<!--more--><\/p>\n<p>The Bill, which will amend both the <strong>Competition Act 1998<\/strong> and the<strong> Enterprise Act 2002<\/strong> and make other provisions about competition law, also hands new powers to the Digital Markets Unit (DMU) within the <strong><a href=\"https:\/\/www.gov.uk\/government\/organisations\/competition-and-markets-authority\" target=\"_blank\" rel=\"noopener\">Competition and Markets Authority<\/a><\/strong> (CMA) &#8211; the competition regulator.<\/p>\n<div class=\"bq2\"><strong>NOTE:<\/strong> Consumer protection policy is devolved to Northern Ireland but reserved for Scotland and Wales. Competition policy, including digital competition, is reserved for the whole of the United Kingdom.<\/div>\n<p>As a result, the CMA will be able to &#8220;<em>directly enforce consumer law rather than go through lengthy court processes<\/em>&#8221; and they&#8217;ll have the power to impose penalties of up to 10% of global turnover for breaching consumer law. This is relevant because the CMA has recently been undertaking work aimed at clamping down on rip-offs and misleading prices (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/03\/cma-clamps-down-on-online-uk-rip-offs-and-misleading-prices.html\">here<\/a>).<\/p>\n<p>The DMCCB covers a variety of areas related to all this, but naturally we&#8217;re most interested in those that might have some relevance for broadband and mobile packages. One example is the clampdown on &#8220;<em>subscription traps<\/em>,&#8221; in which businesses make it difficult for customers to exit their contract.<\/p>\n<blockquote><p><span style=\"color: #339966;\"><strong>Tackling Subscription Traps<\/strong><\/span><\/p>\n<p>Under new rules, businesses must:<\/p>\n<p>\u27a4 Provide clearer information to consumers before they enter a subscription contract;<\/p>\n<p>\u27a4 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; and<\/p>\n<p>\u27a4 Ensure consumers can exit a contract in a straightforward, cost-effective and timely way.<\/p><\/blockquote>\n<p><a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a>&#8217;s <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/02\/end-of-contract-letters-to-start-for-uk-broadband-isps-and-mobile.html\"><strong>End-of-Contract Notifications<\/strong><\/a> (ECN) system already requires all fixed broadband, mobile, home phone and pay TV providers to issue such notifications to existing subscribers at the end of their term (sent by text, email or letter) and the regulator doesn&#8217;t allow longer contracts to auto-renew. But the new bill may give some aspects of this a little more teeth.<\/p>\n<blockquote class=\"bq1\"><p><strong>Paul Scully, Minister for Tech and the Digital Economy, said:<\/strong><\/p>\n<p>&#8220;Today\u2019s announcement shows we are proudly pro-growth and pro-innovation across the board in the tech sector, seeking to open up new opportunities for all firms, however small or large they are, while empowering consumers.<\/p>\n<p>The Prime Minister has made his intention to secure growth and innovation within every corner of our economy very clear \u2013 the new Digital Markets Unit will help fulfil this important priority for the UK in the digital economy.&#8221;<\/p><\/blockquote>\n<p>The bill will also look to tackle the excessive dominance that a small number of tech companies have held over consumers and businesses in the UK, although this has more relevance for companies like Apple and Google (App stores) etc. &#8220;<em>It will set rules that will prevent firms with Strategic Market Status from using their size and power to limit digital innovation or market access<\/em>,&#8221; said the Government.<\/p>\n<p>In terms of the above, only firms with substantial and entrenched market power, in at least one digital activity, providing them with a strategic position, will be designated with<strong> Strategic Market Status<\/strong> (SMS) by the DMU and will be subject to the new regime. A threshold will apply meaning that only firms with a global turnover above \u00a325bn, or UK turnover above \u00a31bn, will be in scope. The pro-consumer measures we mentioned earlier are separate to this.<\/p>\n<p>At the time of writing, we haven&#8217;t yet seen the full text of the bill and so only have a very high-level summary to go off.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government will today introduce their new Digital Markets, Competition and Consumer Bill (DMCCB), which among other things also promises several new protection measures that could benefit customers of broadband ISPs and mobile operators (e.g. clearer contract information and making it easier to exit a contract).<\/p>\n","protected":false},"author":1,"featured_media":20125,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[107,36,38],"class_list":["post-34280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","category-key_uk_isp_industry_developments","tag-adr","tag-ofcom-regulation","tag-politics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - 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