On 6 April 2025, the consumer-related aspects of the Digital Markets, Competition & Consumers Act 2024 ("DMCCA") officially became effective.1
For the first time, the Competition & Markets Authority ("CMA") will have the power to enforce certain – but not all – consumer protection laws directly.2 As part of this direct enforcement role, the CMA will be able to impose fines on undertakings for breaches of consumer law of up to 10% of their global turnover. The relevant UK courts – which, as before, can enforce all relevant consumer laws in the UK – are also afforded this power.
This represents a significant shake-up of the UK's consumer law enforcement landscape and greatly increases the CMA's scope and teeth as a consumer regulator. It will be very important for businesses to be aware of these new changes, including which aspects of consumer law will be within the CMA's remit to directly enforce (which include 32 practices which are banned outright) and how the CMA will approach its enforcement role going forwards.
The CMA has been empowered to enforce the provisions of consumer law which were previously contained in the Consumer Protection from Unfair Trading Regulations ("CPUTRs"). The CPUTRs have now been updated and replaced by Part 4 of the DMCCA, which can be referred to as the unfair commercial practices provisions ("UCP Provisions"). The UCP Provisions seek to achieve a high level of consumer protection and maintain much of the CPUTRs' original scope, whilst also introducing important new prohibitions on issues such as fake reviews, drip pricing and subscription contracts.3
The UCP Provisions can be split into two categories:
In some respects, these two categories reflect the distinction between "by object" and "by effect" restrictions of competition law. Indeed, the CMA's guidance on how it will approach its enforcement role using its consumer enforcement powers feels redolent of its approach to investigations launched under the Competition Act 1998 (certainly, the CMA has been given many of the same powers for the former as it currently has under the latter).
This category of UCP provisions is divided into the following commercial practices:
Although the term "professional diligence" is itself defined,6 and the UCP Guidance notes that it is an objective standard applying to the skill and care with which traders treat consumers,7 there is no list of criteria or factors (exhaustive or otherwise) that will enable businesses to know whether they have, or have not, met the "requirements" of this provision. This may make it difficult, in practice, for companies to know whether they could be in breach, albeit the examples provided in the UCP Guidance – e.g., a builder who does such a poor job of fixing a customer's roof that it immediately leaks – implies that it should be clear in most cases, applying a common-sense approach, when an infringement may arise.
The UCP Provisions prevent a trader from taking any of the following actions which are deemed to be misleading: (a) providing false or misleading information;8 (b) giving an overall presentation of products or services that is likely to deceive the average consumer;9 (c) marketing products/services in a way which creates (or is likely to create) confusion between the products/services, trademarks, trade names or other distinguishing marks of another trader;10 and (d) failing to comply with a requirement in a code of conduct.11
This covers commercial practices that may mislead consumers by failing to give the information they require to make an informed transactional decision. Such an infringement may occur when a trader: (a) omits12 "material information"13; (b) omits information which is required by legislation; and/or (c) fails, in any engagements with consumers, to make it known that they have a commercial intent (unless it is already apparent from the context).14
Traders may not engage in commercial practices which use, or rely on, aggressive practices such as harassment, coercion and undue influence15 as a means of selling their products/services to consumers.
For each of these UCP Provisions, the CMA will need to determine if the engagement in any of these commercial practices has caused the relevant consumer(s) to make a transactional decision that they would not have done otherwise. This will require a case-by-case assessment.
There are three types of commercial practices under the UCP Provisions which, if a trader engages in them, will constitute an automatic infringement. These practices are:
Any trader which fails to provide material17 information to a consumer in a situation which could lead directly to a purchasing decision – e.g., a product's characteristics or price – will commit an automatic infringement. The clear purpose of this provision is, as the UCP Guidance notes, to ensure consumers "know up front what they will end up paying".18
By this token, the practice of showing consumers an initial headline price for a product and subsequently introducing additional mandatory charges as consumers proceed with a purchase or transaction – a process known as "drip pricing" – is prohibited as part of this overall provision.
The DMCCA sets out a total of 32 banned commercial practices which are per se prohibited.19 They include practices such as: (i) falsely claiming to be a signatory to a code of conduct; (ii) falsely claiming that a product will only be available for a limited time; and (iii) claiming to offer a competition or prize promotion without actually awarding the prizes described (or a reasonable equivalent).
Importantly, this list of prohibited practices includes any instance where a trader submits – or else commissions a third party to submit – a fake review of their products and/or services. This prohibition does not just cover reviews which are clearly false in their content, but also reviews which are published in a misleading way.
This prohibition will be infringed where a company, which is responsible for a particular code of conduct, promotes a practice that is "unfair" (i.e., if the practice in question breaches any of the UCP Provisions outlined above). For example, a company would infringe this UCP Provision if: (i) in the relevant code of practice, they promote any practices which would involve making misleading omissions; or (ii) they give advice to other traders (i.e., other signatories to, or adherents of, the relevant code of conduct) that a particular practice is legitimate (i.e., legally compliant) when, in fact, it would constitute a misleading action.
The DMCCA has introduced new rules (expected to come into force next year) that entities must comply with when offering subscription contracts21 to consumers. Whilst these types of contracts can bring benefits to both traders and consumers, it has been suggested that some consumers have become "stuck" in subscription contracts that they would ideally wish to discontinue.22 The UK Government estimates that, at present, UK consumers collectively spend a total of £9.7 million per year on unwanted active subscription contracts.23
To address this issue, the DMCCA has set out a number of new rules that providers of subscription contracts must follow,24 which include:
The CMA will have the direct power to enforce these new subscription contract provisions, as well as the UCP Provisions. However, the new rules on subscription contracts are not yet in force. Secondary legislation will need to be passed to give effect to these new rules and the UK Government does not expect them to come into force until Spring 2026 at the earliest.30
In the meantime, the UK Government – specifically, the Department of Business & Trade – has undertaken a public consultation on the scope of the new subscription contract rules. This consultation closed on 10 February 2025.
The CMA has now finalised new, bespoke guidance on the practical process and procedures it will follow when investigating suspected infringements of the UCP Provisions ("Direct Enforcement Guidance").31
Any consumer law investigation by the CMA will be divided into four main phases:
The CMA will publish – as soon as reasonably practical – a non-confidential version of any FIN it used on its webpages.44
The most important aspect of the CMA's direct enforcement powers is its new ability to impose fines of up to 10% of an entity's worldwide turnover. For entities that have low or negligible turnover (e.g., a start-up company), the CMA notes that it may, instead, impose fixed fines of up to £300,000.47
In addition, the CMA can impose the following monetary penalties:
The CMA has also published detailed guidance as to how it will calculate the total size of any monetary penalties it imposes.48 Any fine included in an FIN will be calculated by the CMA using a five-step process, namely: (i) establishing the seriousness of the infringement and the party's total turnover; (ii) factoring in the need for deterrence and taking into account of the size of the party; (iii) potentially lowering any total fine by reflecting any aggravating or mitigating factors; (iv) making any further adjustments to the fine to ensure the penalty is proportionate and the maximum cap of 10% of worldwide turnover is not exceeded; and (v) applying any discounts the party may have benefitted from due to entering into a settlement procedure.49
It is important to remember that, whilst the CMA now has the power to directly enforce the UCP Provisions, there remain many other aspects of consumer law in the UK which can only be enforced by authorities50 (including the CMA) by seeking a court order. The court-based enforcement regime has also been strengthened by the DMCCA – for example, courts also have the power now to impose fines of up to 10% of an entity's global turnover – and it will be important for traders to be aware that this regime will continue to exist in parallel with the CMA's new direct enforcement role. The one has not been replaced by the other. The CMA has published detailed guidance on how both the CMA's direct enforcement and the court-based enforcement regimes will work going forwards.51
Under the DMCCA, the courts – following any application by the CMA or other enforcers in the UK – may take action to enforce any of the consumer laws set out in Schedule 15 of the DMCCA, which include:
a) The UCP Provisions;
b) The unfair contract terms provisions in Part 2 of the Consumer Rights Act 2015;
c) The CCRs; and/or
d) The Package Travel and Linked Travel Arrangements Regulations 2018.52
There is an interesting question as to how the CMA will approach cases which involve "continuing conduct" (i.e., infringements which took place before 6 April 2025 and continue after this date). As to this, the CMA has noted that, whilst the new laws apply to conduct occurring both before and after 6 April 2025 (i.e., the legal standards and tests will be applied in the same way), for any infringing conduct that took place 6 April 2025, the CMA will not be able to impose monetary fines.53 Similarly, any requirements imposed by the courts in respect of pre-6 April 2025 conduct will be limited to what could have been imposed under the previous regime.54 The CMA has noted that, owing to its inability to impose fines for conduct which occurred prior to the commencement date, fines are likely to be lower in the initial stages of the new regime.55
There are also a number of changes to definitions, relevant tests and language in the DMCCA, the full effects of which may not be fully understood until test cases are litigated. The changes to the definition of "transactional decision", for example, may well be open to interpretation.
On 7 April 2025, the CMA published a further guidance document outlining its anticipated approach to consumer enforcement during the first 12 months following the 6 April 2025 commencement date. In this, the CMA noted the following points:
The DMCCA has ushered in fundamental changes to the consumer law landscape in the UK. In particular, the power of both the CMA and the courts to impose fines of up to 10% of an entity's worldwide turnover will mean that businesses will be forced to look very carefully at their commercial practices to ensure that they work fairly for consumers. This consumer protection / fair dealing aspect of businesses' compliance risk assessments has now assumed far greater importance than it had previously.
There is a balance to be struck. Heightened levels of consumer protection will be welcomed by many, but uncertainties remain for businesses as to how, for instance, the UCP Provisions will be applied in practice and how certain concepts should be interpreted. Some of these provisions are drafted broadly and there are not always clear criteria or redlines for businesses to conduct self-assessments. Identifying what is "misleading" in an objective sense is not straightforward and, in the fast pace of modern commerce, this will likely be a constantly moving target. It will be important for businesses to consider these new developments as soon as possible and take legal advice where necessary. For example, businesses should carefully review their online selling practices, the terms and conditions with which they offer their goods and services and the customer service aspects of their business (particularly for handling any issues or complaints). Companies should also be mindful of the risks – in an M&A context – of acquiring an entity which may have been involved in any consumer law infringements. Indeed, this will be yet another important factor to consider during any DD process.
Those businesses who are facing investigation will also face a better armed regulator with a significant new mandate. Acting quickly with an understanding of how the CMA's investigation and enforcement process works will be essential to mitigate or avoid the more extreme risks that now come with consumer law enforcement action.
It is possible that – just as any investigation and ultimate decision imposed by (including any undertakings agreed with) the CMA using its competition powers are unlikely to be the end of the story – so too may we potentially see the development of group actions for damages on behalf of consumers off the back of any enforcement activity taken by the CMA using its direct consumer enforcement powers under the DMCCA. The risk of follow-on group actions is undoubtedly increased where regulators have greater powers to take action quickly and without needing to rely on the (sometimes lengthy) court enforcement route alone. It should be noted, however, that any such potential claims would not be permitted to be brought as opt-out collective proceedings orders ("CPOs") before the Competition Appeal Tribunal. A consequence of this may be that the line between competition and consumer harm is tested if claimants (and parties who fund them) look to bring CPOs for purported competition law infringements (when, in fact, they relate to infringements of the UCP Provisions).
It will be interesting to see how the new regime under the DMCCA unfolds. One thing is clear – the CMA is not just a nominative consumer law enforcer anymore, but one to be reckoned with.
1 The 6 April 2025 commencement date had been confirmed in the Digital Markets, Competition & Consumers Act 2024 (CMA Consumer Enforcement Rules) Regulations 2025, which were laid in the UK Parliament on 7 March 2025.
2 The consumer laws which the CMA can directly enforce are set out in Chapter 3 of Part 4 of the DMCCA.
3 The Competition & Markets Authority. Unfair commercial practices (CMA207) – Guidance on the protection from unfair trading provisions in the Digital Markets, Competition and Consumers Act 2024 ("UCP Guidance"). 4 April 2025. Available at: Guidance - CMA 207 Unfair Commercial Practices
4 The UCP Guidance gives further detail on what is meant by this concept. It can refer to: (1) the "general" consumer (i.e., a member of a purchasing class who is reasonably well-informed but not a technical expert either, and who is thus representative of a standard consumer); (2) the average member of a targeted consumer group (e.g., advertisements which are aimed at a specific purchasing group, such as credit facilities for sub-prime borrowers); and (3) the average member of a vulnerable group of consumers (e.g., consumers who may be vulnerable because of age, physical or mental health afflictions, and circumstances). The particular category of "average consumer" which may be applied will depend on the type of commercial practice and how it is carried out. In other words, it requires a case-by-case analysis.
5 UCP Guidance, para 1.8.
6 Professional diligence is defined as "the standard of skill and care which a trader may reasonably be expected to exercise towards consumers which is commensurate with either: (a) honest market practice in the trader’s field of activity; or (b) the general principle of good faith in the trader’s field of activity". See Section 229 of the DMCCA and page 59 of the UCP Guidance.
7 UCP Guidance, para 8.3.
8 The UCP Guidance clarifies that information is most likely to be "misleading" where it relates to issues which are relevant to a consumer's transactional decision, such as: (i) the nature/characteristics of the product/service being provided; (ii) the identity and credentials of the trader providing the product/service; and/or (iii) any other matter which would be relevant to the average consumer's decision to enter into a given transaction. Further, information is not just misleading when it is objectively false, but also if it is true but presented in a misleading way. UCP Guidance, para 5.4
9 The UCP Guidance states these types of practices include a situation where the information that consumers receive is not actually false, but is nonetheless arranged, displayed or otherwise presented in a way where the overall effect is likely to deceive the average consumer into making a transactional decision they would not otherwise have taken. UCP Guidance, para 5.7.
10 Commercial practices may constitute misleading actions if: (i) they market a product in a way which creates, or is likely to create, confusion with any products, trademarks, trade names or other distinguishing marks of another trader; and (ii) this is likely to cause the average consumer to take a different decision as a result. UCP Guidance, para 5.9.
11 A trader may commit a misleading action if – in relation to a code of conduct that the trader is genuinely (or else purports to be) subject to – the trader fails to comply with any requirements in this code of conduct and this failure can be verified. Section 225-226 of the DMCCA.
12 According to the UCP Guidance, information will be omitted when it is not included at all, but information can also be considered "omitted" where it is provided to a consumer in such a way: (i) that is unclear or untimely; and/or (ii) that the consumer is unlikely to see it. UCP Guidance, para 6.9.
13 Material information is defined in Section 227(2) of the DMCCA as "information that the average consumer needs to take an informed transactional decision". The extent of information that is required will depend on the circumstances (e.g., what the product concerned is, and where/how it is offered for sale). At the simplest level, failing to provide the price of a product in a timely fashion before a transactional decision is made is likely to amount to a misleading omission. UCP Guidance, paras 6.2 – 6.3.
14 In essence, a trader must make clear to a consumer that any engagement has a commercial motivation. The UCP Guidance gives an example of a trader cold calling a consumer and requesting the latter take part in a survey (which is free), and then subsequently, either during the survey or at the end of it, seeking to sell products/services to the consumer (where this intent had not been made clear from the outset). UCP Guidance, page 52.
15 "Undue influence" is defined as "exploiting a position of power in relation to a consumer so as to apply pressure in a way which significantly limits the consumer’s ability to make an informed decision". See UCP Guidance, para 7.3.
16 An invitation to purchase (which is distinct from the concept of an invitation to treat) involves the provision of information to a consumer: (i) which indicates the characteristics of a product and its price; and (ii) which enables, or purports to enable, the consumer to decide whether to purchase the product or take another transactional decision in relation to the product. The situations where an invitation to purchase ("ITP") can arise are broad. They include everything from a price of a product on display in a shop to a text message promotion or television advertisement. UCP Guidance, pages 35-36.
17 The UCP Guidance specifies the types of "material" information that need to be provided in ITPs, including: (i) the main characteristics of the product (e.g., what it is and what it does); (ii) either the total price of the product or a breakdown of the way it will be calculated; (iii) the identity of the trader and their contact information; and (iv) any optional freight, delivery or postal charges.
18 UCP Guidance, para 4.21.
19 The full list is set out in Schedule 20 of the DMCCA and Chapter 3 of the UCP Guidance.
20 The UCP provisions define a code of conduct as "an agreement or set of rules which defines the behaviour of traders who choose to be bound by it". Section 249 of the DMCCA and para 9.1 of the UCP Guidance.
21 These are contracts which, in exchange for periodic payments (e.g., on a monthly or annual basis), involve suppliers providing goods and/or services to the recipient consumer on demand, at pre-determined intervals and/or on a continuous basis (e.g., a media streaming platform, a magazine subscription, etc.).
22 The fact that consumers can become trapped in ongoing subscription contracts may be due to a lack of awareness (i.e., consumers may have forgotten the existence of such contracts they had entered into previously or else failed to realise that they would remain ongoing (e.g., due to automatic renewal clauses)) or due to factors which prevent consumers' efforts to terminate them (e.g., a lack of clear instructions in how to go about this).
23 Department for Business & Trade. Consultation on the implementation of the new subscription contracts regime ("Subscription Contracts Consultation"). 18 November 2024. Available at: Consultation on the implementation of the new subscription contracts regime (web accessible version) - GOV.UK
24 Specifically, Chapter 2 of Part 4 of the DMCCA sets out new rules for traders offering subscription contracts and new rights for consumers entering into them.
25 See Parts 1 and 2 of Schedule 23 of the DMCCA for full details on the pre-contract information required.
26 Namely, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 ("CCRs").
27 Subscription Contracts Consultation, Section 1.1.
28 Ibid. Paras 119 to 126.
29 Ibid. Paras 113 to 117.
30 Ibid.
31 Competition & Markets Authority. Direct consumer enforcement guidance – CMA200 ("Direct Enforcement Guidance"). 14 March 2025. Available at: Direct consumer enforcement guidance. CMA200
32 These may include complainants, whistleblowers and other third parties.
33 A person located outside the UK will be deemed to have a sufficient UK connection if they: (i) are a UK national; (ii) are an individual who is habitually resident in the UK; (iii) are a firm established in the UK; or (iv) carry on business in the UK or by any means direct activities in the course of carrying on a business to consumers in the UK.
34 Direct Enforcement Guidance, paras 3.10.
35 Ibid. Para 2.15.
36 Section 181(4) of the DMCCA.
37 This involves providing the relevant entity with the opportunity to review certain of the relevant documents/materials that the CMA has gathered during its investigation and which have allowed the CMA to establish that an infringement has (or, in this case, is likely to have) taken place. Providing parties with access to the CMA's file ensures that they are able to properly exercise their rights of defence.
38 The precise format and delivery method for any written representations will be specified in the PIN, and any oral submissions heard by the CMA will only take place once it has had a chance to review the written representations. Any oral hearing – to which parties can bring their legal advisers in assist in making any submissions – will be attended by the CMA's Final Decision Group (i.e., those that, like the independent panel in a Phase 2 merger review, take the ultimate decision) along with members of the CMA's original case team and any other relevant CMA staff. Direct Enforcement Guidance, paras 2.36 to 2.72.
39 Direct Enforcement Guidance, paras 2.62 to 2.64.
40 Ibid.
41 Ibid. Paras 4.1 to 4.10.
42 Ibid. Paras 4.33 to 4.63.
43 Ibid. Para 4.71.
44 Ibid. Para 2.83.
45 Ibid. Para 2.91.
46 An online interface notice ("OIN") is a specific type of infringement notice that may be issued by the CMA in respect of online commercial activities. The scope of activities which are covered by OINs are broad, given the term "online interfaces" covers "any software including websites, applications and other digital content, which is operated for, or in connection with, giving access to or promoting goods, services or digital content".
47 Direct Enforcement Guidance, paras 7.11 and 7.15.
48 Ibid. Paras 7.24 to 7.76.
49 Ibid.
50 Other so-called "enforcers" of consumer law – albeit the name is slightly misleading, as none but the CMA have direct enforcement powers – include Trading Standards, the Financial Conduct Authority ("FCA"), the Office of Communications ("Ofcom") and the Office of Rail and Road ("ORR").
51 Competition & Markets Authority. Consumer protection: enforcement guidance – CMA58. 4 April 2025. Available at: Consumer protection enforcement guidance
52 Ibid. Paras 2.11 and 5.6.
53 Direct Enforcement Guidance, paras 1.16 to 1.18.
54 Ibid.
55 The Competition & Markets Authority. The CMA's approach to consumer protection. 7 April 2025. Para 3.13. Available at: The CMA's approach to consumer protection
56 Ibid. Paras 3.6 to 3.8.
57 Ibid. Para 3.3.
58 'Pace', 'Predictability', 'Proportionality' and 'Process'. See further details at: The CMA's approach to consumer protection
