New Crackdown on Subscription Scams and Fake Reviews
The UK Government is launching tough new powers to shake up digital markets and protect consumers from costly subscription traps and fake reviews. The fresh legislation, unveiled today (25 April), aims to boost competition and give the CMA the muscle to smash rip-offs costing Brits billions every year.
Subscription Scams Cost UK Shoppers £1.6bn
- The new Bill targets subscription traps that drain £1.6 billion annually from consumers.
- It introduces simpler ways for customers to opt out and demands firms send reminders before free trials or intro offers end.
- Fake reviews are also set to be ripped up, cracking down on dishonest businesses gaming star ratings.
CMA Gets Power Boost to Fight Digital Giants
The Competition and Markets Authority (CMA) will now enforce consumer laws directly—no more waiting on lengthy court battles. Penalties for breaking the rules could hit 10% of a company’s global turnover.
A brand new Digital Markets Unit within the CMA will challenge big tech’s grip, forcing giants to offer more choice and transparency or face huge fines. Smaller firms and start-ups will get a fairer shot as the DMU tackles anti-competitive tactics like artificial price hikes and locked-in products.
Industry Voices Back the Move
Business and Trade Minister Kevin Hollinrake: “From tech giant abuse to subscription traps and fake reviews, consumers deserve better. These laws empower the CMA to protect everyone’s hard-earned cash.”
Paul Scully, Minister for Tech and the Digital Economy: “We’re pro-growth and innovation, cracking open new opportunities for firms of all sizes while empowering consumers.”
Rocio Concha, Which? Director of Policy and Advocacy: “This Bill is a big step forward to stop fake reviews and costly subscriptions, giving the CMA the teeth needed to fine wrongdoers and loosen the tech giants’ stranglehold.”
Kate Nicholls, UKHospitality Chief Exec: “Fake reviews are poison for honest businesses and customers alike. We welcome the Government’s swift action to level the playing field.”
Background: What You Need to Know
- New rules take effect after parliamentary approval and further guidance.
- The Bill follows consultations with businesses, consumer groups, and regulators to ensure stronger, balanced competition and protections.
- The CMA can now fine companies up to 10% of global turnover for consumer law breaches, with penalties also hitting individuals responsible.
- Businesses will need to provide clearer subscription info, timely trial reminders, and easy opt-outs.
- Fake review crimes include commissioning, posting without verification, and advertising fake ratings.
- Targets tech dominance by requiring fairer data access and more transparent app store and review systems.
Big Tech on Notice
If firms with strategic market status don’t play by the new rules, the DMU can fine them heavily and hold senior managers personally accountable.
The goal is simple: give consumers more choice and lower prices, fuel innovation, and keep the UK a top tech destination.
