BRC Welcomes CMA update on its DMCC Act powers
The BRC welcomes today's update from the CMA on its approach to its new DMCC Act powers, including to fake reviews, early enforcement action, drip pricing and its approach to enforcement.
In particular we note the Draft Guidance will be streamlined. In its comments on the Draft the BRC noted that the Guidance was very comprehensive and useful in that sense - but many businesses would need a CMA badged and authorised shorter version. We trust this is the intention.
Drip pricing raised a number of issues not least for delivery charges. We note the CMA will re-consult on some aspects of drip pricing.
We support the CMA in its intention to focus its early enforcement on the worst offences. It mentions practices that are always banned but does not indicate if this means all the banned practices. It also mentions making objectively false claims to consumers without elaboration. It is not clear if this means things like green claims. Businesses will be given an extra 3 months to adapt their processes to deal with Fake Reviews. This may be an underestimate of the time required.
We also called for an approach to enforcement where reputable businesses that seek to be compliant should not be subject to excessive penalties - and the first approach should always be to seek compliance through a co-operative approach - sometimes referred to as OBCR. The CMA seems to take a step in this direction with a commitment to engage with businesses that are unsure of what is required and to take into account proactive steps to return to compliance in setting any penalties. The BRC believes that in fact in such a scenario penalties should not normally be required.
The CMA blog setting out its views can be downloaded.
