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22/01/2025

Unfair Commercial Practices Guidance: Draft Guidance for the Self-Catering Sector 

The Association of Scotland’s Self-Caterers (ASSC) welcomed the opportunity to respond to the Competition and Markets Authority (CMA) consultation on draft guidance on the protection from unfair trading provisions in the Digital Markets, Competition and Consumers (DMCC) Act 2024. 

The ASSC broadly welcomes the overarching aims of the Digital Markets, Competition and Consumers (DMCC) Act 2024 to enhance fairness and transparency in commercial practices. As a key stakeholder representing Scotland’s self-catering industry, we are committed to ensuring consumer protection while safeguarding the viability of self-catering businesses and the intermediaries that support them.  

However, aspects of the draft guidance could disrupt established industry practices and have unintended consequences. We have provided detailed responses to the consultation questions, with recommendations to clarify and adapt the guidance to suit the unique characteristics of our sector. 

The Draft Guidance outlines essential practices to ensure fairness, transparency, and compliance for businesses operating within the furnished holiday let sector. Below are the key points: 

Key Information for Consumers 

Businesses must provide clear, material details about the accommodation being sold, including: 

  • What is being sold?
    Example: Number of beds, type of accommodation. 
  • Total Price:
    Must include all mandatory fees (e.g., cleaning, linen) and taxes – including a Visitor Levy and associated VAT. If the exact total cannot be calculated in advance, the method for calculation must be disclosed (e.g., dog fees, visitor levies). 
  • Seller Identity:
    The business name and contact details of the seller and, if acting on behalf of someone else, the property owner. We seek clarification on protecting owner details when using agents. 
  • Cancellation Rights:
    Example: Full refund up to 28 days before check-in. 

Prohibition of Drip Pricing 

Businesses cannot advertise a headline price that excludes mandatory costs. 

  • Example: A £1,000 weekly rental cannot exclude a mandatory £150 cleaning fee from the displayed price. 
  • Optional extras (e.g., hot tubs, insurance) are allowed, provided they are clearly presented as optional. 
  • Refundable deposits (e.g., £200 damage deposit) should not inflate the headline price, as they are typically returned. PASC UK has asked for clarity on this issue. 

Prohibited Practices 

Businesses must avoid practices that mislead or harm consumers: 

  1. False Claims: 
  • Advertising membership of codes of conduct or displaying quality marks without authorisation. 
  • Misrepresenting availability or pricing to create urgency. 
  1. Fake or Misleading Reviews: 
  • Reviews must be genuine and cannot be incentivised or manipulated. 
  • Reasonable steps must be taken to identify and remove fake reviews. 
  1. Misleading Information: 
  • False property descriptions (e.g., claiming 3 bedrooms when there are 2). 
  • Omitting or obscuring additional charges in fine print. 
  1. Aggressive Sales Tactics: 
  • Coercion, harassment, or undue influence (e.g., offering discounts only for immediate purchase). 

Consumer Protection Standards 

Businesses must act with professional diligence, ensuring that: 

  • Properties meet expected standards (e.g., no leaks, functioning appliances). 
  • Complaints and inquiries are handled promptly. 

ASSC supports measures to improve transparency and fairness while seeking clarification on issues including owner privacy, damage deposit policies, and agency practices. Businesses are encouraged to review the guidance to ensure compliance and maintain consumer trust. 

You can download the ASSC’s submission to the consultation below. 

We will report back on results of the consultation.  

 

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