The Competition and Markets Authority (CMA) has launched a significant consumer protection drive targeting online pricing and sales practices across the economy. This represents the first major enforcement effort under the sweeping powers granted by the new Digital Markets, Competition and Consumers Act 2024 (DMCCA). For an overview of the changes brought in by the DMCCA, see our related blog post here.

The CMA is focusing on stamping out practices that mislead or pressure customers online. It is urging businesses to review their digital sales practices and ensure compliance.

CMA Targeting Unfair Commercial Practices

The CMA’s action follows a major cross-economy review of more than 400 businesses that identified non-compliance concerns across 14 sectors. The regulator has issued advisory letters to 100 businesses and has already opened formal investigations into 8 companies, including major players in the live events, services, and retail sectors.

The practices under scrutiny are:

  • Drip Pricing. This is the practice of adding mandatory fees, taxes, and other unavoidable charges (like booking or administration costs) late in the customer journey, failing to include them in the initial price displayed. The DMCCA requires that all mandatory charges for the product or service must be clearly shown upfront at the earliest stage.
  • Illegal Pressure Selling. The CMA is targeting tactics that falsely pressure customers, such as the use of misleading countdown timers or running “sales” that do not genuinely end when advertised. These tactics create an artificial sense of urgency, which the CMA views as an illegal aggressive commercial practice.
  • Automatic Opt-Ins. This relates to the use of pre-ticked boxes or automatic default settings for optional extras (like insurance or faster delivery). Customers must provide explicit, affirmative consent before being charged for any additional items or services.

The CMA’s First Strides Under the New Enforcement Regime

The launch of these investigations signals that the CMA has moved from guidance to enforcement. It is using a number of high-profile investigations to set benchmarks on what is, and is not, acceptable in online pricing.

  • Direct Enforcement. Under the DMCCA, the CMA can decide whether a business has infringed consumer law directly, without needing to take the case to court.
  • Significant Penalties. The CMA can impose fines of up to 10% of a company’s global annual turnover for serious breaches of consumer law.
  • Customer Compensation. The CMA can order businesses to pay compensation to affected customers.

These new powers mean the consequences for non-compliance are severe and the time taken to reach a penalty decision will be significantly shorter than under the previous legal framework.

What Can Online Retailers Do To Ensure Compliance?

To mitigate the risk of CMA enforcement and fines, online retailers should consider a compliance review and paying close attention to the principles in the CMA’s guidance on price transparency and unfair commercial practices.

It is worth focusing on the following areas:

  • Price Transparency. Audit website architecture to ensure the headline price displayed for any product or service already incorporates all mandatory and unavoidable costs. Optional elements must be clearly presented as add-ons.
  • Choice Architecture. eliminate all pre-ticked boxes or automatic selections for additional charges or services. Customers must deliberately opt-in to any extra cost. Verify that all time-limited offers are genuine and that any claims about scarcity or urgency are truthful and auditable.
  • Documentation and Training. Develop and implement clear internal policies reflecting the requirements of the DMCCA. Provide training to your marketing, sales, and IT teams to ensure compliance is built into all stages of the customer purchase journey, from initial advertisement to final payment.