Context
Neatly summarised in an article published by UK law firm Lewis Silkin, the CMA has published a raft of new web pages and guidance documents in relation to the impact of the new consumer protection regime under the Digital Markets, Competition and Consumers Act 2024 (DMCC), most of which came into force on 6th April 2025. The CMA’s new powers under the DMCC allow it to decide if consumer protection laws have been infringed, so that customers can be compensated and businesses sanctioned if they fail to comply.
Effective consumer protection has positive impacts both on consumers and businesses, allowing people to have trust and confidence in the markets they operate in. This allows for informed choices to be made, and enables businesses to have confidence that competitors are operating the same way and not breaking the law to gain an unfair advantage.
Key points to note and next actions
The CMA says it will promote consumer protection by promoting consumer trust and confidence and deterring poor corporate practices. It reflects the Strategic Steer from the UK government – aiming to safeguard consumer interests while supporting economic growth.
In the first 12 months under the DMCC Act the CMA intends to target conduct which is harmful to customers as well as engage with businesses to help them comply with the law (see its ‘approach to consumer protection’ publication). This is likely to focus on vulnerable customers, customer communications, hidden fees and unfair contract terms – points firms will be familiar with, given the FCA’s focus on these areas. The CMA’s publications include web pages and documents in relation to:
- unfair commercial practices (including what businesses need to know about them, how to understand them, and a Technical Note);
- its Enforcement Guidance;
- fake reviews and complying with consumer protection law; and
banning ‘dip pricing’, which is a pricing practice which uses unexpected mandatory additional charges added at the end of a sales journey.