This is a specialized legislative research report published by the National Diet Library in the "Foreign Legislation" series in August 2025, dealing with legal analysis of the implementation of consumer protection provisions in the UK Digital Markets, Competition and Consumer Act.
Legislative Background and Digital Economy Challenges
Rapid digital technology development has led to many new problems difficult to address with conventional consumer protection legislation. Sophisticated online fraud, unauthorized billing in subscription services, consumer misrepresentation through fake reviews, counterfeit product sales on digital platforms, inappropriate personal data collection and use, and algorithmic discriminatory treatment have become serious problems, requiring fundamental review of existing consumer protection systems. Additionally, as part of constructing independent regulatory systems post-Brexit, the need to maintain and improve consumer protection standards while preserving independence from EU regulation was also part of the background.
Main Content of Consumer Protection Provisions
The Digital Markets, Competition and Consumer Act's consumer protection provisions comprehensively stipulate consumer rights enhancement in online transactions. Specifically, transparency obligations for digital service contract terms, subscription cancellation procedure simplification, fake review posting prohibition and penalty strengthening, digital goods and services defect liability clarification, personal data use prior consent strengthening, and algorithmic decision explanation accountability are stipulated as legal obligations. Additionally, damage compensation systems for consumers, collective action system expansion, and mandatory rapid dispute resolution procedures (ADR) are included.
Enforcement Structure and Regulatory Authority Powers
For effective Act implementation, existing regulatory agencies including the Competition and Markets Authority (CMA), Information Commissioner's Office (ICO), and Financial Conduct Authority (FCA) have significantly expanded powers. New powers include digital platform operator inspection rights, digital evidence collection and analysis authority, sanctions on violating companies (up to 10% of annual revenue), and direct consumer remedy order authority. AI-powered violation behavior automatic detection systems, consumer complaint processing system digitization, and international enforcement cooperation system construction are also advancing.
Coordination with Digital Platform Regulation
This Act's consumer protection provisions have systematic design for organic coordination with digital market competition regulation included in the same Act. Platform operators with "Strategic Market Status" including Google, Apple, Meta, and Amazon face stricter consumer protection obligations, with measures to prevent disadvantageous consumer treatment using market dominance. Particularly emphasized are fairness and transparency assurance in app stores, search engines, social media, and online advertising markets.
Comparison with EU Regulation and Independence
UK consumer protection regulation adopts unique system design utilizing UK legal traditions and market economy characteristics while referencing EU regulations including GDPR (General Data Protection Regulation), Digital Services Act (DSA), and Digital Markets Act (DMA). Particularly different approaches from the EU are taken in dispute resolution procedures utilizing common law flexibility, expanded consumer collective action rights, and enhanced damage compensation systems.
International Coordination and Extraterritorial Application
Responding to cross-border digital transaction nature, this Act permits extraterritorial application under certain conditions, making overseas operators' unfair transactions with UK consumers subject to regulation. Through bilateral and multilateral cooperation agreement conclusion with the US, Canada, Australia, Japan, and others, international enforcement cooperation systems are being constructed, ensuring global digital economy consumer protection effectiveness.
Economic Effects and Industrial Impact
Act implementation is expected to improve consumer trust in digital economy, promote fair competition, and support healthy innovation development, while concerns include increased corporate compliance burden, rising new entry costs, and impacts on technological development. Particularly as consideration measures for small and medium enterprises and startups, phased implementation, technical support, and consultation system enhancement are being implemented alongside.
The article provides detailed analysis from comparative legal system perspectives of what characteristics the UK digital consumer protection legislation holds as an independent regulatory system post-Brexit, what influence it has on international digital governance development, and what role it plays in regulatory coordination with the EU, US, and Asia-Pacific countries.