A New Age Dawns for Consumer Protection in the UK

The Digital Markets, Competition and Consumers Act 2024 (DMCC Act) came into force on 6 April 2025, overhauling the UK’s consumer protection regime.  The Competition and Markets Authority (CMA) has heralded[1] this as a “step-change in more direct, impactful consumer protection” as, for the first time, the CMA now has powers directly to impose fines of up to 10% of a company’s global turnover for breaches of UK consumer protection rules, which could include actions in relation to greenwashing.

We have published a new briefing, in which we discuss the CMA’s new powers as well as the key points of interest arising from the Approach Document[2] and the roster of final guidance published by the CMA over recent days and weeks.  We also examine where the CMA might turn its attention first, and set out some top tips for businesses.  The headline points are set out below. 

The new administrative enforcement model

As discussed in detail in our briefing last July, the DMCC Act radically alters the shape of consumer protection enforcement in the UK by introducing an administrative enforcement model - bringing the regime more closely into line with the CMA’s existing antitrust enforcement regime.  Whereas previously the CMA had no powers to sanction businesses in its own right for breaches of UK consumer protection laws, but rather had to seek enforcement via the courts in contested cases (in what was often a protracted process), the CMA can now directly impose fines based on the offending company’s global turnover, as well as additional daily fines for continued non-compliance.

The CMA’s Approach Document recognises that at the start of the regime it may not be able to impose very significant fines, given that it can only impose a penalty for conduct taking place after 6 April.  However, businesses should remember that the CMA can now also directly impose financial measures via redress, and the Approach Document makes clear that the CMA is focused on ensuring that consumers are compensated and that it will “prioritise consumer redress and measures to secure future compliance”. 

A regime fit for the digital age

As discussed in detail in previous briefings, the substantive changes made by the DMCC Act to the UK consumer protection rules themselves – with their focus on regulating fake reviews and pricing practices, such as drip pricing – are intended to modernise the regime to make it fit for the digital age.  

Consumer protection…for businesses?

In a development that could not have been anticipated when the Conservative government first presented the DMCC Bill two years ago, these powers come into force at a time when the Labour government has made clear the importance of regulators like the CMA contributing meaningfully to its mission for economic growth.[3]  The joint statement[4] issued by the Department for Business and Trade and the CMA reinforces this message, stating that “the government expects the CMA to use these important new powers in the service of the growth mission, by promoting consumer trust and confidence, while deterring poor practice”.

The CMA makes clear in the Approach Document that it intends to bring enforcement cases under the new regime over the next few months.  It also adds further colour to Sarah Cardell’s (Chief Executive of the CMA) statement[5] last month that in the first year of enforcement the CMA would target “the most egregious harms”, explaining that the CMA expects initially to focus on breaches “where the law is clear”, including enforcement against aggressive sales practices targeting vulnerable consumers and the provision of objectively false information.  It remains to be seen, however, what precise impact the wider growth agenda focus will have on the nature (and specific targets) of such enforcement activity.

The CMA’s indication that it will initially target “egregious infringements” suggests that it may at first steer away from pursuing more contentious cases.  Any businesses which come under early investigation may, however, at least take some heart from the CMA’s emphasis in the Approach Document on its commitment to the “4Ps” (Pace, Predictability, Proportionality, and Process), and in particular the pledges to set out a clear timetable at the outset of an investigation, and to use its information gathering powers proportionately and in a targeted way.

[1]Annual Plan 2025 to 2026 - GOV.UK

[2]The CMA’s approach to direct consumer protection - GOV.UK

[3]Strategic steer to the Competition and Markets Authority - GOV.UK

[4]Joint statement on consumer protection - GOV.UK

[5]Our new consumer enforcement regime – Competition and Markets Authority