Consumer protection provisions of the UK DMCCA and the CMA’s new enforcement powers are now in force

The majority of the consumer protection provisions of the landmark Digital Markets, Competition and Consumers Act (the DMCCA) went live yesterday, on 6 April 2025. These provisions largely repeal, re-state and – in some cases – expand protections for consumers against unfair and aggressive commercial practices under the Consumer Protection from Unfair Trading Regulations 2008 (the CPRs). They also introduce significantly enhanced enforcement powers for the CMA, including the power to impose substantial fines including fixed penalties of up to 10% of a trader’s annual global turnover.

Also hot off the press are:

• The CMA’s “approach to consumer protection” (here), published today, setting out its priorities for the next 12 months – see summary below in What’s next?;
• Finalised guidance on: (i) the new unfair commercial practices (here); (ii) the consumer protection enforcement regime (here); and (iii) fake and misleading reviews (here), released on 4 April 2025; and
• The CMA’s direct consumer enforcement guidance (here), which was published on 14 March 2025. 

We set out below the headline areas of reform that are now in effect and their likely impact on businesses. Get in touch or sign-up to our DMCCA Client Toolkit for more details.

What does this mean for you?

1.Unfair commercial practices 

While the DMCCA broadly follows the regulatory regime established under the CPRs, there are some important changes to the rules concerning unfair commercial practices to be aware of.  For example, the DMCCA: 

• Introduces more stringent rules requiring the provision of material information in any invitation to purchase. This will prohibit ‘drip-pricing’ practices (i.e. where headline prices are shown upfront but where unexpected and untrailed mandatory charges only appear at the end of a purchasing journey).
• Introduces new automatically unfair commercial practices in Schedule 20, including relating to fake and misleading reviews.
• Amends and in some cases expands the scope of certain offences as set out in the previous regime. For example, the definition of “commercial practice” in the context of unfair commercial practices has been extended to cover commercial practices “related to” the promotion or supply of a product, rather than only practices “directly connected with” such promotion or supply.

Of particular note are the reforms to drip-pricing and false and misleading reviews. We discuss these below.

1. Drip-pricing 

The DMCCA includes a blanket ban on the practice known as ‘drip-pricing’.

This is a change from the CPRs which designated drip-pricing as a form of misleading omission and only prohibited it where a trader’s deployment of the practice would have caused “the average consumer to take a transactional decision he would not have taken otherwise”. The DMCCA removes this requirement and, in doing so, lowers the bar for challenging a business for this type of practice. 

In response to this change, traders should examine their checkout / sale procedures to ensure they comply with the new requirements. 

Further guidance on Unfair Commercial Practices under the DMCCA, including on certain aspects of drip-pricing, has just been released (see here). The CMA has also recently announced (see here) that it will run an additional consultation this summer relating to areas of its existing guidance concerning drip-pricing that have “created more uncertainty” (including fixed-term periodic contracts) and before then “will only take enforcement action against drip pricing which clearly breaches the rules”.

     b. Fake and misleading reviews

As of 6 April 2025, the DMCCA introduces prohibitions on submitting, commissioning, or “facilitating” the submission or commission of fake or misleading reviews, concealed incentivised reviews and misleading consumer review information (referred to here as “fake reviews”). It also prohibits traders from publishing consumer reviews or review information without taking “reasonable and proportionate steps” to prevent the publication of fake reviews.

The CMA recognises that businesses will need time to implement changes to their compliance regimes in light of this new prohibition. Accordingly, the CMA has announced that during the first three months of the regime, it “will focus on supporting businesses with their compliance efforts rather than enforcement” in respect of fake reviews (see further our recent blog here). On 4 April 2025, the CMA published standalone guidance on fake reviews (here) which provides the CMA’s interpretation of each of the distinct commercial practices prohibited under the DMCCA (alongside illustrative examples). 

2.Enhanced enforcement powers for the CMA

As of 6 April 2025, there are also significant changes to the consumer protection enforcement regime. Most significantly, the CMA can now directly investigate and enforce against businesses for non-compliance with information requests and/or breaches of consumer protection legislation (whereas previously this had only been in the remit of the courts). 

1. Direct enforcement powers

The CMA can now directly investigate and enforce against breaches of Chapters 1-3 of Part 4 of the DMCCA (i.e. the main DMCCA consumer protection-related measures), along with breaches of other consumer protection laws stipulated in Schedule 16 DMCCA (for example, the Consumer Rights Act 2015). The CMA’s new powers include the ability to impose: 

• monetary penalties (up to 10% of a company’s annual global turnover);
• directions as to the business’s future conduct; and/or
• enhanced consumer protection measures (including redress - ordering businesses to compensate consumers, further compliance measures, or a requirement to provide consumers with more information to enable them to make informed choices).

      b. Court-based civil enforcement 

Monetary penalties can be imposed by the CMA in respect of established breaches of consumer law, as well as failures to comply with information notices or for providing false or misleading information as part of an investigation, and also for breaches of undertakings agreed with the CMA. 

In addition to these direct enforcement powers, the CMA and other enforcers (including Which? (the consumers’ association)) may apply to court for an enforcement order if they consider that a person has engaged in a commercial practice which constitutes a relevant infringement. 

A commercial practice will constitute a relevant infringement where it harms the collective interests of consumers and breaches an enactment, obligation or rule listed in Schedule 15. The commercial practice must also have a sufficient UK connection. 

What’s next?

1. The CMA’s “approach to consumer protection” (here) reiterates that it intends to focus early action on more egregious practices, including aggressive sales tactics, hidden fees (i.e. drip-pricing), unfair contract terms and outright banned practices, including the new prohibition on fake and misleading reviews. It also clarifies that fines are likely to be lower in the initial period of the new DMCCA regime. 
2. As noted in its recent blog, the CMA has plans to establish, from April, “an extensive business outreach programme”, alongside “a series of accessible and interactive business explainers for the key practices covered by the guidance”. 
3. As above, we are also anticipating a further consultation over the summer on new guidance concerning areas of drip-pricing practices where there remains uncertainty about the new rules in the DMCCA, and finalised guidance in Autumn.
4. The DMCCA introduces new, prescriptive rules on subscription contracts, which are due to come into force in Spring 2026. Businesses will be required to ensure that consumers have all the information they need at each stage of the subscription contract. For example, consumers must be provided with specific pre-contract information at the sign-up stage, frequent reminder notices during the contract, and clear information and easy routes to exit a subscription contract. In the coming months, we are expecting secondary regulations setting out more detail, and further guidance as to how these new rules should be interpreted. 

Are you prepared?

These significant changes to the consumer protection landscape in the UK under the DMCCA are now in force - are you prepared?

• Comprehension. Check that you have a clear understanding of the CMA’s expectations for businesses by getting up to speed on the newly published guidance on unfair commercial practices and the CMA’s direct enforcement model. 
• Compliance. Make sure that your business is set up to comply with the new provisions and that you are thinking broadly about compliance planning across your business. For example, ensure you have sufficient systems in place to comply with the enhanced consumer protection rules as they relate to fake and misleading reviews. 
• Capabilities. Consider whether more personnel ought to be trained for DMCCA-specific requirements. Make sure sales and marketing teams are aware of the new rules, including those relating to drip-pricing and fake reviews.