The long-awaited consumer protection reforms brought by the Digital Markets, Competition and Consumers Act (DMCCA) are here and set to transform consumer protection in the UK. As of April 6, the CMA can directly enforce consumer law breaches, rather than having to go through the courts to establish an infringement. The CMA sees the changes brought about by the DMCCA as an “opportunity to do [our] consumer protection work more effectively, more quickly and—hopefully—with even better outcomes for people in the UK”.[1] The CMA’s goal is to establish a robust and independent consumer protection framework that not only shields UK consumers and builds their trust but also ensures fair competition by creating a level playing field for businesses. The expectation is that this dual approach of safeguarding consumer interests and promoting fair business practices will, in turn, boost both consumer and business confidence, ultimately driving growth within the UK economy and fostering effective competition.[2]

To help businesses to comply with the new legislation, the CMA has published guidance on unfair commercial practices,[3] the new banned practice of fake reviews,[4] and the CMA’s enforcement rules and procedures.[5] This article outlines the key features of the legislation and highlights emerging trends in the UK’s consumer enforcement landscape.

The New Unfair Commercial Practices Provisions

The DMCCA contains provisions to protect consumers from unfair commercial practices (UCPs). These provisions are similar to and replace the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) but with some important changes.[6]

The UCPs apply to all commercial dealings between ‘traders’ and consumers. There are two main types of UCP:

  • practices that are only unfair if they are likely to cause the ‘average consumer’ to take a ‘transactional decision’ they would not have otherwise taken; and
  • practices that are always considered to be unfair.

Commercial Practices Likely to Lead the ‘Average Consumer’ to Take at Different ‘Transactional Decision’

The UCPs provide that certain commercial practices will be unfair if they are likely to cause the average consumer to take a transactional decision that the consumer would not otherwise have taken. They include the provision of false, misleading, or deceptive information to consumers, omissions that are likely to mislead consumers, aggressive selling practices, and practices falling short of the requirements of professional diligence. This is an objective test, meaning it is not necessary to show that consumers in fact took a different transactional decision as a result of the commercial practice.

What constitutes an ‘average consumer’ and a ‘transactional decision’ is central to this test:

  • Different types of ‘average consumer’. There are three broad categories of average consumers: (i) the average consumer, (ii) the average member of a targeted group of consumers, and (iii) the average member of a vulnerable group of consumers. The first category refers to the general average consumer, which is defined as ‘reasonably well informed, reasonably observant, and reasonably circumspect’.[7] The second category applies when a commercial practice is directed to a particular group of consumers (e.g., the elderly), in which case the ‘average consumer’ refers to the average member of that group. The third category applies when a trader could reasonably be expected to foresee that a group of consumers is particularly vulnerable to a commercial (e.g.,by reason of age, mental or physical health, credulity, or circumstances). The definition of the average consumer, therefore, depends on the circumstances of the case and who the commercial practice is aimed at.
  • Different types of ‘transactional decision’. A ‘transactional decision’ is any decision made by a consumer relating to the purchase or supply of a product including whether, how or on what terms to make the purchase or supply. There are numerous transactional decisions taken in the course of one purchase, and transactional decisions can occur even before a consumer decides to purchase a product.

The concepts of the ‘average consumer’ and the ‘transactional decision’ are applied flexibly, giving the CMA considerable discretion and reinforcing the fact-specific nature of consumer protection law.

Commercial Practices That Are Always Unfair

There are also certain practices that will always be considered unfair, regardless of whether they have an impact on consumer behavior.

Schedule 20 banned practices. Schedule 20 to the DMCCA lists 32 commercial practices that are always unfair.[8] These are unlawful regardless of their likely effect on the behavior of the average consumer. These include pressure selling, misuse of trust marks, and fake reviews. Most of these were banned under the CPRs, but ‘fake reviews’ is a new category of banned practice introduced by the DMCCA.

New Banned Practice—Fake Reviews

To comply with the law, businesses must take ‘reasonable and proportionate’ steps to detect, investigate, and take action in response to banned reviews and false or misleading consumer review information. This includes publishing a clear policy prohibiting fake reviews and clearly publishing the approach taken with incentivised reviews.

Businesses should also conduct a risk assessment to evaluate the likelihood of banned content appearing and take appropriate measures to mitigate these risks. Additionally, robust processes should be implemented to detect, investigate, and remove banned content. The guidance emphasizes that what is considered “reasonable and proportionate” will depend on the specific circumstances of each business. The CMA has stated that for the first three months of the new consumer regime coming into effect, the CMA will focus on “supporting businesses with their compliance efforts rather than enforcement.”[9] To that end, the CMA recently released new guidance to help businesses comply.[10] This guidance applies to all traders who publish consumer reviews or consumer review information in any format, including websites, social media, and print publications.

Omission of material information from invitations to purchase. The DMCCA makes omitting material information from ‘invitations to purchase’ an automatically unfair practice.[11]

A commercial practice that provides information to consumer setting out the characteristics of a product and its price, and which enables or purports to enable the consumer to decide whether to purchase the product or take another transactional decision in relation to that product is deemed an invitation to purchase.[12]

An invitation to purchase need not provide full details about a product or offer an immediate way to buy it. It can exist even when the information is limited—for example, a poster in a train showing a product and its price, without saying where to buy it, may still qualify. Likewise, ads that list a monthly fee but omit extra charges, or that refer generally to a product range, may still count. Typical examples include price tags in stores, product listings online, restaurant menus (including those accessed via QR codes), advertisements on television or social media, promotional text messages, newspaper ads with “drive away” prices, and banners in mobile apps offering premium features.

A commercial practice that does not include a price or provide details about a specific product—whether through text, image, or other means—is unlikely to be considered an invitation to purchase. Brand-focused advertising that promotes a trader generally, without referencing particular products, will typically fall outside this category.

Under the DMCCA, when a trader makes an invitation to purchase, they must include certain material information to help consumers make informed decisions. This includes:

  • The main characteristics of the product
    (e.g., what it is, what it does);
  • The total price, including mandatory fees and taxes—or, if the price can’t be set in advance, how it will be calculated;
  • Any optional delivery or postal charges, or a clear statement that such charges may apply;
  • The identity and contact details of the trader, and of any third party they represent;
  • Details of any cancellation or withdrawal rights;
  • Any non-standard arrangements for payment, delivery, or complaints;
  • Any additional information required by law.

If space or time limits make it hard to provide full details (e.g., on packaging or in short ads), traders must ensure consumers can access the information in a clear and timely way, such as through a QR code or link. However, simply making information available isn’t enough if it’s unlikely to be seen.

If the information is obvious from context—like a shop’s address while in-store—it doesn’t need to be repeated. But all material information must be presented clearly and accessibly, or it may be treated as a misleading omission.

Drip Pricing

The DMCCA is intended to, among other things, address ‘drip pricing’ which is the practice of showing consumers an initial headline price for a product and subsequently introducing additional mandatory charges as consumers progress the transaction. In the recently published guidance, the CMA has not covered certain aspects of drip pricing that have created more uncertainty for businesses and consumers, such as fixed-term periodic contracts. The CMA intends to run a further consultation on revised draft guidance relating to those aspects, with final guidance in this area to follow in the autumn. In the meantime, any enforcement action will focus on drip pricing conduct which clearly breaches the current rules and guidance.[13]

Coming in Spring 2026: Subscription Traps

The DMCCA also introduces new rules governing subscription contracts.[14] Stringent rules will govern subscription contracts, including mandatory pre-contractual information, reminder notices, straightforward termination processes, and 14-day cooling-off periods within which customers can cancel their subscriptions without penalty. For example, businesses will need to provide details of how consumers can end subscriptions and how businesses may change their prices. These rules are expected to come into effect in Spring 2026.

Direct Enforcement: A New Era of CMA Authority

The DMCC grants the CMA direct enforcement powers, enabling them to enforce consumer laws and impose penalties without court intervention. This shift marks a significant increase in the CMA’s authority and agility in addressing consumer protection concerns. The DMCC aims to place consumer protection law “on a par with competition law” and will be a key enforcement tool for the CMA.[15]

The Enforcement Process:

  1. Pre-launch. The CMA gathers information to assess the need to open an investigation with the view to using its enforcement powers.
  2. Investigation. If there are reasonable grounds to suspect a breach of consumer law, the CMA will open an investigation and collect evidence of potential breaches. The CMA can apply to the court for an interim enforcement order to prevent or stop consumer harm while also continuing its direct consumer enforcement investigation. If there are reasonable grounds to believe that the respondent (i) has engaged in or is likely to engage in a commercial practice constituting a relevant infringement or (ii) is an accessory to such a practice, then the CMA may issue a Provisional Infringement Notice (PIN) and the respondent has an opportunity to respond. The CMA allows the investigated party to inspect its file when issuing a PIN, ensuring they can defend themselves and make representations regarding the allegations and proposed penalty.
    Businesses can enter into undertakings or settlements with the CMA.
    • Undertakings. Before a Final Infringement Notice (FIN) is issued, businesses under investigation can offer undertakings—commitments to address the CMA’s concerns. For example, a business may undertake to stop a certain practice or provide consumer redress. The CMA has significant leeway in deciding when to accept undertakings. They are more inclined to accept them if the undertakings
      fully resolve the CMA’s concerns, including addressing consumer harm (like fixing problematic terms or providing refunds), and if they can be implemented quickly. The CMA is unlikely to accept undertakings if the involved party has a history of non-compliance with previous commitments or legal orders. The CMA will generally not accept undertakings if they would be difficult to monitor or if not completing the investigation would weaken the deterrent effect. If the CMA accepts the undertakings, it may conclude the investigation without imposing any penalties. Importantly, undertakings do not require an admission of liability or payment of a penalty.
    • Settlements. At the discretion of the CMA, parties can enter into settlement arrangements whereby the infringing party admits to the infringement, ceases the infringing conduct and agrees to certain conditions in exchange for a reduced penalty. In suitable situations, settlements offer the CMA a more efficient process, leading to quicker final decisions and saving resources. This includes the settling party agreeing not to challenge the decision, which avoids the time and cost of the CMA having to defend an appeal. These factors will also influence the CMA’s decision regarding whether a case is suitable for settlement and whether to enter settlement talks. Settlement discussions can be initiated either before or after a PIN is issued. However, the earlier a business enters into settlement discussions, the greater the potential discount. A maximum discount of 40% of the penalty is available to parties agreeing to settle prior to a PIN being issued.
  3. Final Decision. After considering any written and oral representations, a neutral ‘Final Decision Group’[16] will ultimately determine whether a breach has occurred. If a breach is deemed to have occurred, a FIN will be issued, outlining any monetary penalties imposed, as well as other enforcement measures as applicable. The CMA has the authority to impose a variety of measures to address consumer law breaches. These include (i) Directions, which are tailored to prevent the specific infringing practice, (ii) Enhanced Consumer Measures (ECMs), which encompass redress for affected consumers, compliance measures to prevent future breaches, and choice measures to enhance consumer decision-making, and (iii) Online Interface Notices (OINs), which can require content removal, modification, or other actions to protect consumers’ collective interests online.
  4. Appeal. Businesses have a right to appeal decisions to impose monetary penalties, the nature or amount of any such penalty, and/or the giving of directions to the High Court or equivalent within 60 days of the FIN being given to the appellant.[17] Financial penalties are suspended pending appeal, but other directions remain in effect.
An Illustration of the enforcement process

Penalties: A Five-Step Approach, Significant Maximums

The CMA will have the power to determine penalties for substantive breaches of consumer law, ensuring they are both effective deterrents and proportionate to the infringement. The maximum penalty is 10% of global turnover or £300,000, whichever is greater—reflecting the seriousness of consumer protection breaches.

The Guidance provides some clarity on how the CMA will approach the calculation of such penalties. For example, in cases where there is ‘harm’ and ‘medium culpability’, the starting point will be the greater of up to £75,000 or 7.5% of UK turnover.[18] Using the relevant starting point as a base, the CMA will then adjust the penalty for deterrence, aggravating or mitigating factors and to take into account the size of the party. Then, the CMA will adjust the penalty to ensure that it is proportionate and that the maximum cap of 10% of worldwide turnover is not exceeded before applying a settlement discount where applicable.

The CMA can also impose penalties for administrative breaches, for example, for breaches of undertakings or directions, for non-compliance with information notices and for the provision of false or misleading information. For breaches of undertakings or directions, fines can total up to the higher of £150,000 or 5% of global turnover. Businesses that fail to comply with an information notice may be fined up to (i) £30,000 or, if higher, 1% of global annual turnover. The CMA may also impose similar fines of up to £30,000 or, if higher, 1% of global annual turnover on businesses that provide materially false or misleading information.[19] These administrative penalties can also be calculated by reference to a daily rate, also summarized in the guidance.[20]

The CMA has indicated that in the initial 12 months of the new laws coming into effect, the CMA’s focus regarding penalties will be on stopping harmful conduct quickly and compensating consumers. While monetary penalties can and will be imposed for infringing conduct occurring after the commencement date, fines are likely to be lower in this initial period.[21]

The CMA’s ambition for consumer protection enforcement is “to promote trust and confidence, helping to grow the economy while deterring poor corporate practices”.[22] In line with this aim, the CMA has indicated that it will focus on supporting “the vast majority of well-intentioned businesses who want to do the right thing”[23] and has restated its commitment to meaningful changes across four key aspects of how it works—proportionality, predictability, process and pace. The CMA has also noted that its immediate enforcement action priorities are likely to focus on the “more egregious breaches”,[24] such as aggressive sales practices that prey on vulnerability, hidden fees and unfair contract terms and provision of false information to consumers. The CMA has also noted that its initial enforcement action will likely relate to areas of essential spending, and will target behavior where the CMA has already put down a clear marker through its previous enforcement work, such as on drip pricing and fake reviews.

The CMA’s recent enforcement activity has focussed on the following areas:

  1. Online choice architecture. The CMA is scrutinizing online business interfaces to prevent harmful choice architecture that distorts consumer behavior. This can lead consumers to make poor purchasing decisions. The CMA has launched proceedings against Emma Sleep for unfair online sales practices like using countdown timers which misled consumers and has focused on online choice architecture in competition cases and market studies.
  2. Green claims. The CMA is actively investigating misleading environmental claims by businesses. For example, an investigation into green claims in the fashion sector resulted in ASOS, Boohoo, and Asda giving undertakings to remedy the CMA’s concerns.[25]
  3. Subscription traps and fake reviews. The CMA has taken action (under the previous consumer protection regime) against companies like Nintendo and eBay regarding automatic subscription renewals and fake reviews. Once the DMCC comes into force, businesses will have to comply with more stringent upfront obligations in these areas.
  4. Dynamic pricing. The CMA is considering broader competition and consumer issues raised by so-called ‘dynamic pricing’, and in November 2024, launched a targeted project to consider how dynamic pricing is being used across different sectors of the economy.[26] The CMA is also investigating Ticketmaster’s Oasis ticket sales, which many fans thought used dynamic pricing. Despite not finding any evidence this was the case, the CMA has nevertheless outlined concerns that consumers were not given clear and timely information as to ticket conditions and pricing.

In its document setting out its approach to consumer protection, the CMA noted that it would bring the first cases under the new regime in the coming months.[27]

What’s Next?

The DMCC represents an important change in UK consumer protection. While providing guidance as to how businesses can comply, the CMA is also signaling a firm intention to use its new powers to robustly enforce consumer protection laws. The CMA has indicated that, over the next 12 months, it will focus its efforts on:[28]

  • supporting businesses in their compliance efforts, particularly with regards to new obligations, and;
  • taking action to protect consumers from the most egregious breaches of the consumer law, particularly in areas where the law is clear and has been in place for a long time. The CMA will also prioritize consumer protection in essential spending areas like heating, groceries, and housing to support individuals facing household budget pressures.

In doing so, the CMA will be guided by the “4Ps”—Pace, Predictability, Proportionality, and Process—to ensure swift, fair, and efficient consumer protection enforcement, fostering business confidence and economic growth.[29]

The CMA appears keen to use its new powers to swiftly tackle topical consumer issues, set important precedents, and publicly deliver outcomes for consumers. However, its ability to do so will necessarily depend on adequate resourcing in its consumer function. Historically, the Consumer Protection directorate has been fairly lean, and this team will likely need to ramp up in size which may take some time. It may be that in the interim, the CMA will focus on issuing guidance, making direct contact with businesses about potentially problematic conduct and will only open a small number of enforcement investigations. The CMA has also noted its intention to prioritize consumer redress and measures to secure future compliance, and that “fines are …likely to be lower in the initial period of the new regime”.[30]

How Can You Prepare?

The CMA’s guidance on the new regime illustrates that consumer laws are flexible in the way they can be applied. There is a wide range of conduct that can be caught, and a great deal of discretion involved in how the CMA may interpret legal tests and standards.

With the new regime now in force, businesses should be:

  • updating internal policies, consumer-facing materials, and staff training to reflect the new legal requirements;
  • putting in place effective systems for managing consumer complaints and queries; and
  • closely monitoring CMA enforcement activity and guidance to stay ahead of compliance risks.

In this evolving regulatory environment, proactive compliance is more important than ever. Businesses that take early, practical steps to align with the DMCC will not only reduce legal and reputational risks but also position themselves to build trust with consumers and regulators alike.

[1] See The CMA’s approach to the new consumer enforcement regime – GOV.UK.

[2] Ibid.

[3] See Unfair commercial practices guidance (CMA207); What businesses need to know about unfair commercial practices; Understanding unfair commercial practices: examples; Technical note on unfair commercial practices.

[4] See Fake reviews guidance (CMA208); Short guide for businesses: publishing consumer reviews and complying with consumer protection law.

[5] See Direct consumer enforcement guidance (CMA200); Direct consumer enforcement rules (CMA201); Consumer protection: enforcement guidance (CMA58).

[6] The Consumer Protection from Unfair Trading Regulations (CPUTRs) were originally introduced to implement the EU’s Unfair Commercial Practices Directive in the UK, simplifying and strengthening consumer protection by replacing parts of 23 older laws. Following the UK’s exit from the EU, the CPUTRs continued to apply under the European Union (Withdrawal) Act 2018, maintaining alignment with EU consumer protection standards as of December 31, 2020. The DMCC Act now revokes and replaces the CPUTRs with similar objectives—protecting consumers from unfair practices—but seek to achieve a higher level of protection. Any changes made since Brexit may cause UK rules to diverge from previous EU standards. See Technical note: unfair commercial practices, 4 April 2025.

[7] Section 246(2) DMCC Act

[8] See Digital Markets, Competition and Consumers Act 2024, Schedule 20. Section 242 of the DMCCA also gives the Secretary of State the power to add, delete or modify commercial practices in Schedule 20 by way of delegated legislation.

[9] Ibid.

[10] See Fake reviews guidance (CMA208); Short guide for businesses: publishing consumer reviews and complying with consumer protection law.

[11] The Consumer Protection from Unfair Trading Regulations 2008 also contained provisions prohibiting the omission of material information from invitations to purchase, but this provision was subject to the “transactional decision test”, i.e., that the omission will only breach the provision if it caused the average consumer to take a transactional decision that the consumer would not otherwise have taken.

[12] Section 230(10) DMCC Act

[13] See Our new consumer enforcement regime – Competition and Markets Authority.

[14] See Part 4, Chapter 2 of DMCC Act.

[15] See CMA submission to the Digital Markets, Competition and Consumers Bill Committee – GOV.UK.

[16] The Final Decision Group will be a group of three ‘relevant persons’, which can include members of the CMA Board, the CMA Panel, and the CMA Staff.

[17] Note, the grounds of appeal are limited to (a) error of fact, (b) error in law, (c) the amount of penalty or the nature of the directions is unreasonable, or (d) the decision was unreasonable or wrong for any other reason.

[18] See Direct consumer enforcement guidance (CMA200), Annex E.

[19] See section 198 DMCC.

[20] See Direct consumer enforcement guidance (CMA200), Chapter 7.

[21] See The CMA’s approach to consumer protection, page 9.

[22] Ibid, page 5.

[23] See Our new consumer enforcement regime – Competition and Markets Authority.

[24] Ibid.

[25] See Green claims: CMA secures landmark changes from ASOS, Boohoo and Asda – GOV.UK.

[26] See Dynamic pricing project – GOV.UK.

[27] See The CMA’s approach to consumer protection, page 18.

[28] See The CMA’s approach to the new consumer enforcement regime – GOV.UK.

[29] Ibid.

[30] See The CMA’s approach to consumer protection, page 9, 12.