By Dr Neil Cobbold, Commercial Director, Reapit UKI
If you’ve read the trade press recently, you’ll know there’s a lot of talk about recent guidance from the Competition and Markets Authority (CMA) around the Digital Markets, Competition and Consumers Act 2024 (DMCC Act). But let’s be clear, the most important thing agents can do right now is not to panic.
Yes, the National Trading Standards Estate and Letting Agency (NTSELAT) guidance on material information has been withdrawn, but it’s still relevant. That’s because it hasn’t yet been specifically replaced or updated with guidance for the property industry by the CMA. In other words, the definition of material information parts A, B and C haven’t changed.
What’s changed is that the definition of an ‘invitation to purchase’ is now written into UK law under the DMCC Act, rather than being set out in regulations. This shift significantly raises the stakes: failing to include or link to material information in a property advert – whether on a portal, social media, or in your agency window – is now automatically considered an unfair commercial practice.
The DMCC Act also defines an ‘average consumer’ with some nuance as an adult who is reasonably smart, pays attention, and uses common sense. But the Act also says that if you’re talking to a specific group (for example buyers looking at retirement properties, first-time renters or students), you need to make sure your messaging is clearly understood by that group.
This may go as far as changing the way you show or link to the material information at every touchpoint defined as an ‘invitation to purchase’, depending on the ‘average audience’ for that specific property.
What is clear is that the lack of property sector guidance from the CMA, combined with the withdrawal of material information guidance by trading standards, has created a lot of anxiety among sales and letting agents.
And that is perfectly valid. The penalties for getting something wrong under the DCMM Act are severe, including possible criminal prosecution: officers of a non-compliant company may be liable for up to two years’ imprisonment.
In addition, the potential fines are significant; either £300,000 or 10% of global turnover, whichever is greater. And these fines aren’t court-enforced either, the CMA can fine you if they spot a breach.
So how are we tackling it at Reapit? Firstly, we’re asking for your views and questions to really take the pulse of the industry, so we can feed that back to the government. Secondly, we’ll be running a free webinar open to everyone in the industry, where we’ll cover your views and as many questions as possible – giving you a greater understanding of the DMCC Act and the parts of your business you need to review.
So if you want to share your views and book your spot on our free webinar, click here.
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