NEW RULES BAN SUBSCRIPTION TRAPS AND FAKE REVIEWS

Buying, selling or hosting fake reviews will become illegal as part of changes planned in new laws.

The UK government's Digital Markets, Competition and Consumer Bill is due to be unveiled on Tuesday. The proposed legislation seeks to protect consumers by banning payment or free goods in exchange for glowing reviews, reminding customers when free subscription trials end, and combatting the current market dominance of major tech companies. This is the result of a lengthy investigation conducted since 2021 into the impact of large technology firms. Geolocation does not factor into inclusion on this list; any applicable companies registered abroad may still come under the scope of this bill. If so, action may be taken through the newly formed Digital Markets Unit which operates as part of the Competition and Markets Authority (CMA). These measures include but are not limited to allowing users on Apple devices to choose from alternative app stores or requiring search engines to share their data.

The UK bill is very wide-ranging, and the CMA will have to:

• Deal with the huge, global issue of big tech's market dominance

• Help people manage subscriptions, and potentially extend the "cooling off" period so they can be cancelled after one payment is made

• Ensure platforms take "reasonable steps" to verify that product and service reviews are genuine

The CMA has proved a UK regulator can be effective when tackling what are likely to be predominantly US-based giants, after it successfully forced Meta, Facebook's parent company, to sell the graphics animation firm Giphy after ruling that it would harm competition. Meta expressed disappointment, but it did comply.

Lawyer Nick Breen, from Reed Smith, said on social media the additional powers given to the CMA under the new bill mean that "no-one has the luxury of taking this lightly.

Neil Ross, from trade association techUK, also on social media said he hoped it would include "robust checks and balances" as well as an efficient appeals process.

The new laws we're delivering today will empower the CMA to directly enforce consumer law, strengthen competition in digital markets, and ensure that people across the country keep hold of their hard-earned cash," said Business Minister Kevin Hollinrake.

The Competition and Markets Authority (CMA) is authorised to enforce consumer law without a court order and can impose fines of up to 10% of worldwide revenues for infractions. The EU Digital Markets Act was created in response to similar situations regarding dominant tech firms.

The new rules will be enforced as soon as possible following parliamentary approval, said the Department of Business and Trade.