On 11 December 2024, the Committee of Advertising Practice (CAP) and the Broadcast Committee of Advertising Practice (BCAP) launched a public consultation into the proposed amendments to the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (CAP Code) and the UK Code of Broadcast Advertising (BCAP Code) respectively (the Advertising Codes). The amendments come off the back of the recently passed Digital Markets, Completion and Consumers Act 2024 (DMCCA) which will come into force in April 2025. The consultation seeks to align the Advertising Codes with the current changes being seen in UK consumer law. In this article, we consider some of the key proposed changes under the Advertising Codes.
Key proposed changes
Tackling online “drip pricing”
The DMCCA seeks to provide protection to consumers by introducing the omission of material information from an invitation to purchase as a new unfair commercial practice. The move is in response to the rise of online “drip pricing”; a misleading practice whereby hidden fees are later revealed to consumers during final online checkout. The DMCCA aims to tackle this by directly prohibiting this behaviour. The CAP and BCAP have responded by proposing new wording to be added to the Advertising Codes in order to align with the new DMCCA.
Mirroring the prohibition on fake consumer reviews
Under the DMCCA, it is also an unfair commercial practice to submit or write a fake consumer review or publish one without taking such reasonable and proportionate steps to prevent its publication. CAP have proposed new rules within their consultation that relate to marketing materials that fall under the remit of the CAP Code. However, given the wide-ranging nature of this prohibition, along with the degree of overlap already seen with existing rules on endorsements and testimonials, CAP and BCAP are to issue further guidance on its interpretation in due course.
Widening the prohibition on falsely claiming to cure illness
The proposed amendments to the Advertising Codes also seek to align with the prohibition within the DMCCA not to falsely claim that a product is able to prevent or treat a disease or a malformation. The DMCCA has widened the scope here. It has replaced the phrase “cure” with “prevent or treat” and further prohibited marketers from claiming that a product can “modify a person's appearance” or “modify a physiological function”.
Redefining the transaction decision test
The DMCCA has broadened the scope of the test to decide whether a decision made by a consumer is a transaction decision. The Advertising Codes propose to restructure their test to align with this amendment. However, the consultation notes that the widened scope is unlikely to have a major impact on its application under the advertising rules.
The deadline for responses to the consultation
The consultation invites responses from stakeholders with an interest or expertise in digital marketing and the implementation of the DMCCA. However, responses from other stakeholders and members of the public are also encouraged. The consultation closes at 5pm on 5 February 2025, so be sure to submit any comments on their proposed amendments to the Advertising Codes before it’s too late!