New consumer protection provisions are now in force under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), giving the Competition and Markets Authority (CMA) the ability to deliver what the UK Government claims is more effective consumer protection.

The CMA will now be able to decide whether consumer protection laws have been infringed (rather than litigating through the courts) and to tackle any breaches directly and proportionately, including through consumer redress and fines.

The new regime will seek to help the CMA to safeguard consumer interests while also enhancing trust.

The CMA also emphasised the importance of fostering a level playing field for fair-dealing businesses – so they can grow and invest, confident that competitors cannot gain an advantage by breaking the law.

The CMA has stated that it intends to take a proportionate approach, saying that it wishes to ‘support businesses to do the right thing by their customers while minimising compliance burdens – because when businesses get it right, customers benefit.’ To ensure businesses – large and small – have clarity and predictability around implementation of the new regime, the CMA has today published an ‘Approach to Consumer Protection’.

The document sets out:

• likely priority areas of enforcement and compliance activity
• how the CMA will reflect the government’s strategic steer and its own planned improvements to key aspects of the way it works (pace, predictability, proportionality and process – the ‘4Ps’ framework)
• what stakeholders can expect from the CMA

The CMA and the UK government also published a joint statement today, reinforcing the CMA’s intended approach and the role of robust consumer protection in helping to grow the economy by promoting trust and confidence, while deterring poor corporate practices.

Sarah Cardell, chief executive of the CMA, said: “Consumers deserve to know that the CMA has their back; and fair-dealing businesses looking to grow and invest deserve to know that their competitors are playing by the same rules. We will use the new regime to strengthen the trust and confidence of consumers and businesses – supporting economic growth and incentivising good corporate practice.

“Most businesses work hard to serve their customers and do the right thing. We recognise the importance, particularly for small businesses, of any new rules being clear and proportionate to comply with – and that this is a period of change when they may need help to understand their legal obligations.

“We’re working hard to support them with that and keep burdens to a minimum – through accessible guidance and communications, as well as direct engagement – alongside listening and responding to feedback.

The DMCCA includes an explicit ban on the posting and commissioning of fake reviews – which has been added to the banned practices list. The CMA has previously taken action in this area and will be focused on ensuring compliance with the new provisions.

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The DMCCA also updates the law on pricing information businesses must show to customers. This includes a ban on ‘drip pricing’ – where shoppers are shown an initial price for a product, but more fees are added (‘dripped’) as they proceed with their purchase.

The CMA has now issued guidance to ensure businesses understand how to comply with those aspects of the law which are already well established and largely unchanged. Before enforcing new provisions, and following clear feedback, the CMA has said it will consult further on newer aspects which have created some uncertainty – such as fixed-term periodic contracts – with the aim of publishing final guidance in the autumn.

Action: The first 12 months

The CMA will target behaviour that is particularly harmful to consumers and represents clear infringements of the law, such as:

• aggressive sales practices that prey on consumers in vulnerable positions
• fees that are hidden until late in the buying process
• information being given to consumers that is objectively false
• unfair and unbalanced contract terms
• behaviour where the CMA has already put down a clear marker through its previous enforcement work, such as on drip pricing and fake reviews

Next steps

The CMA has outlined its immediate next steps. They include:

• opening its first enforcement cases under the new regime, focusing on more egregious breaches of the law
• working with stakeholders to understand what areas or issues most require consumer law advice to remove barriers to growth
• setting out how businesses can bring forward evidence of competitors that are potentially infringing the law
• exploring new opportunities for businesses to get advice from the CMA where a lack of legal precedent could be impacting innovation

Businesses who are concerned about a company’s behaviour can report directly to the CMA online: Report a competition or market problem.