Major tech firms face hefty fines under new digital consumer bill

Major tech firms are facing the possibility of massive fines under new legislation aimed at enforcing consumer protection rules. The proposed law seeks to address issues such as fake online reviews and challenging subscription cancellations.

While the government hasn't explicitly named these companies, the legislation empowers authorities to compel tech firms to disclose their data to rival search engines and enhance transparency regarding app stores and review systems. Oversight of major tech companies will be carried out by the Digital Markets Unit, a part of the Competition and Markets Authority (CMA), which will also determine which firms obtain strategic market status.

Expected to be introduced in parliament on Tuesday, the bill is likely to become law next year.

Additionally, the legislation will target fake reviews. While specific details are yet to be finalized, the current draft proposes criminalizing the posting of fake reviews without verifying their authenticity, commissioning others to write fraudulent reviews, or offering to submit fake reviews.

Recently, the consumer group Which? issued a warning about the prevalence of Facebook groups offering free products or payment in exchange for fake reviews on platforms like Amazon, Google, and Trustpilot.

This upcoming legislation aims to hold major tech firms accountable for consumer protection, ensuring a fair and trustworthy online marketplace for consumers. The proposed fines and measures are designed to tackle issues that have been affecting consumers' trust and confidence in online reviews and subscription services.