DMCC: new consumer enforcement powers are now in force – are you ready?

Under the Digital Markets, Competition and Consumers Act 2024 (DMCC), the Competition and Markets Authority (CMA) now has increased enforcement powers in relation to consumer law, which represents a fundamental shift in the UK’s consumer protection regime.

What has changed?

Since 6 April 2025, the DMCC has introduced significant changes to the enforcement of consumer protection laws in the UK.

The DMCC, which broadly follows the regulatory regime established under the Consumer Protection from Unfair Trading Regulations 2008 (now largely revoked), widens the scope of certain offences, introduces new offences and, significantly, enables the CMA to directly enforce consumer law through administrative proceedings.

Some of the main changes introduced by the DMCC include:

• updating the list of banned unfair commercial practices (UCPs), including:

• drip-pricing – there is a blanket ban on the practice known as ‘drip-pricing’ (where a headline price is initially shown to consumers, but mandatory charges are added later during the purchasing process) which harm consumers and fair dealing businesses by hindering effective price competition
• fake-reviews – there are prohibitions on submitting, commissioning, or facilitating the submission or commission of fake or misleading reviews, concealing incentivised reviews, and publishing consumer reviews without taking reasonable and proportionate steps to prevent the publication of fake reviews. The CMA has stated that it recognises that businesses will need time to implement changes in light of this new prohibition and will, for the first 3 months of the new regime, “focus on supporting businesses with their compliance efforts rather than enforcement.”

• broader test for Unfair Commercial Practices (UCP) - the reformulated and broader test for a UCP states that a commercial practice is unfair if it:

(a) is likely to cause the average consumer to take a transactional decision that the consumer would not have taken otherwise as a result of the practice involving one or more of the following:

i. a misleading action;
ii. a misleading omission;
iii. an aggressive practice (e.g., pressure selling or harassment); and/or 
iv. failing to follow requirements of professional diligence.

(b) omits material information from an invitation to purchase.
(c) is a banned commercial practice (those listed in Schedule 20, such as the new banned practices of fake reviews and drip pricing, which are in all circumstances considered unfair).

The transactional decision test does not apply to the practices in (b) or (c) above, meaning that a trader that carries out any of these commercial practices can be sanctioned by enforcers without assessing whether it is likely to cause the average consumer to take a different transactional decision in relation to a product.

• broader definitions of the concepts of ‘trader’, ‘product’ and ‘commercial practice’, which means that the scope of the DMCC, and the new powers, is very wide
• new enforcement powers for the CMA - the CMA now has the power to issue infringement notices (i.e. decisions) setting out why it considers that a traders’ conduct or practices breach consumer law, and impose fines of up to 10% of the global turnover on companies, as well as the ability to impose directions on businesses and award compensation to consumers
• subscription contracts - in 2026, traders also will be subject to additional obligations to make it easier for consumers to provide informed consent and to opt out of auto-renewal contracts.

How will the CMA approach this?

The CMA may deal with infringements of consumer law by using several different powers.  The CMA can choose to promote compliance through providing information and advice.  Additionally, or alternatively, it may choose to enforce a range of consumer protection legislation through its civil powers, which include a court-based enforcement regime and a direct enforcement regime.  It also has criminal powers to prosecute traders that engage in UCPs.

The CMA has broad investigative powers, including the power to request information from parties under investigation and third parties, to enter premises, and to make test purchases.

Direct enforcement regime

Under the direct enforcement regime, the CMA can:

• issue a Provisional Infringement Notice (PIN) - a PIN will be issued if the CMA reasonably believes that a party has breached, or is likely to breach, consumer law (or is an accessory to such practice) and will set out any proposed directions or penalty that the CMA is considering imposing.  The CMA may also require the party to provide evidence substantiating the accuracy of any factual claim.  Relevant parties will have access to the CMA’s file and have an opportunity to submit written representations and attend an oral hearing to make their representations about the giving of the PIN, including any representations they wish the CMA to take into account when deciding whether to give the party a Final Infringement Notice
• issue a Final Infringement Notice (FIN) - a FIN will be issued if the CMA considers that a party has engaged or is engaging, in a commercial practice that breaches consumer law (or is an accessory to such practice).  The FIN will set out the relevant facts any proposed directions or penalty that the CMA is considering imposing.  The FIN will be made public through a press release
• accept undertakings - the CMA can accept undertakings where it has not yet issued a FIN.  This gives the infringing party an opportunity to make a voluntary commitment to change its conduct without accepting liability
• agree a settlement - parties can also enter settlement with the CMA but this requires the party to admit the infringement and to take such steps to stop or mitigate the relevant infringement.  A settlement discount of a monetary penalty can be applied but depends on the stage of the investigation at which settlement discussions take place.  Where a party agrees to terms for settlement discussions prior to the issue of a PIN a discount of up to 40% can be applied. If after the issue of a PIN, the maximum discount is 25%
• impose penalties - as noted above, where it finds an infringement, the CMA will be able to impose a penalty of up to £300,000 or 10% of a party's global turnover (whichever is higher).

The CMA’s ‘Direct Consumer Enforcement Guidance’ document explains the CMA's approach to determining the level of a penalty, applying a stepped approach as follows:

• step 1 – calculation of the starting point having regard to the seriousness of the infringement (considering an assessment of the level of harm and the party's culpability) and the party's relevant turnover (the starting point for substantive infringements can be up to 30% of the party's UK turnover)
• step 2 – adjustment for deterrence and to take account of the size of the party
• step 3 – adjustment for aggravating or mitigating factors
• step 4 – adjustment for proportionality and to ensure the statutory cap of 10% of worldwide turnover is not exceeded
• step 5 – application of a settlement discount where applicable.

Is there an appeal process?

Yes, a party to whom a relevant notice is given (including a FIN) may appeal against a decision to impose a monetary penalty, the nature or amount of any such penalty, and/or the giving of directions.

Appeals must be made to the High Court in England and Wales or Northern Ireland or to the Outer House of the Court of Session in Scotland, must be brought within 28 days or 60 days (depending on the type of notice), and must be made on the one of the following grounds: (a) the decision was based on an error of fact, (b) the decision was wrong in law, (c) the amount of the penalty or nature of the directions is unreasonable, or (d) the decision was unreasonable or wrong for any other reason.

The appeal court may quash, confirm, or vary the relevant notice. It may also remit any matter that is the subject of the appeal back to the CMA.

What do I need to do now?

Businesses should begin reviewing their commercial practices (in particular, pricing practices) and assessing their compliance with the new rules to minimise the risk of enforcement action.  Businesses should ensure that appropriate policies and procedures are in place that prevent fake reviews, and should provide refresher training for relevant teams on the prohibited practices.  The CMA has released guidance which gives traders an indication on how to comply which businesses should be familiar with.