The Digital Markets Competition and Consumers Act 2024
January 30, 2024 | 
Aby McGarry
In an era of increasing demand for sustainable products and services, businesses are keen to position themselves as champions of sustainability. This has led to a notable rise in greenwashing, where companies make misleading claims about their environmental impact, knowingly or unknowingly.
Mosaic’s Conscience Marketing™ framework
Responding to this trend, Mosaic, a full-service marketing and communications agency in Colchester, Essex, has developed the Conscience Marketing framework.
This trademarked approach is specifically designed to guide businesses in aligning their marketing strategies with genuine sustainable practices, with a new training course available at www.consciencemarketing.co.uk.
This approach, centred around the 5Cs – Customers, Climate, Colleagues, Communities, and Credentials – is a versatile strategy applicable to both digital and traditional marketing, which helps businesses align their marketing efforts with authentic sustainable practices, ensuring that their claims are not just compelling but also credible and ethical.
A surge in sustainable demand
The shift in consumer preferences for environmentally friendly products and services is starkly evident; a 2023 KPMG survey of 2,000 UK adults revealed that two-thirds would actively seek out sustainable options. This preference is reflected across the whole of the UK, which is compelling businesses to re-evaluate their marketing strategies and forcing them to incorporate green messaging.
However, in their eagerness to meet consumer demand businesses have sometimes been overzealous or inaccurate in their portrayal of their environmental impact. Up until this year, this has led to no more than a rap across the knuckles, but this is all set to change.
Digital Markets Competition and Consumers Bill 2024
In parallel with rising consumer interest in environmental marketing claims, there’s been an increase in regulatory attention, particularly in the digital domain. The Digital Markets Competition and Consumers Act 2024 (DMCC), which is currently still a Bill, focuses specifically on digital markets. Once enacted later this year, it is set to become a pivotal regulation in the UK’s approach to digital market fairness and consumer protection.
The DMCC bill aims to regulate large digital firms, ensuring they don’t misuse their market power, while maintaining a competitive and transparent digital environment.
Anticipating broader marketing regulations
While the DMCC bill currently focuses on digital markets, it is only a matter of time before similar scrutiny and enforcement power are extended to all other marketing channels.
This anticipated expansion underscores the importance of integrating ethical marketing practices across all platforms and mediums.
Impact on digital and non-digital marketing
Though the DMCC bill is centred on digital markets, its implications resonate across all marketing channels. It underscores the importance of honesty and accuracy in marketing claims, whether online or offline.
This aligns with the broader societal and legal emphasis on transparency, as evidenced by over half of the respondents in the 2023 KPMG survey stating they would cease purchasing from companies engaged in greenwashing.
The role of the Competition and Marketing Authority under the DMCC
Under the new Act, the Competition and Markets Authority (CMA) will have expanded powers, including the ability to fine companies up to 10% of their global turnover for misleading claims.
The CMA’s decision-making process will also be expedited, making it more efficient in addressing violations.
Green Claims Code: A key compliance tool
The CMA’s Green Claims Code, which outlines principles for making truthful environmental claims, will become increasingly relevant once the DMCC Act comes into force. Companies already complying with this Code are demonstrating their adherence to making truthful environmental claims, a practice that aligns with the expected standards under the DMCC Act.
As such, the Code serves as an essential tool for all businesses, guiding them to ensure that their marketing, digital or traditional, is in line with their actual environmental practices and compliant with emerging regulations.
Embracing comprehensive marketing strategies
To adapt to these regulatory changes, businesses should:
· Reassess their overall marketing strategies, ensuring environmental claims are accurate across all channels.
· Embrace transparency in their communications.
· Consult with experts to navigate the nuances of the new bill and the Green Claims Code.
With change comes opportunity
The era of sustainable consumerism has ushered in a new paradigm for businesses. As the Digital Markets Competition and Consumers Act 2024 looms on the horizon, it brings with it a stark reminder – the days of unchecked green claims are over.
However, it also brings with it an incredible opportunity to connect with your audience on a level that matters more than ever, as you embrace transparency and fortify your brand’s integrity.
Let’s collaborate to develop a marketing strategy that it not just impactful and aligned with consumer values but also seamlessly integrated with the upcoming regulatory framework.