Clarity on application of DMCCA consumer protection regime

Briefing

Secondary legislation has been made bringing much of the consumer protection regime under the UK's Digital Markets Competition and Consumers Act 2024 (DMCCA) into force in April 2025. We also have further clarity around enforcement, particularly in relation to fake reviews and drip pricing although there is more guidance to come.

DMCCA consumer provisions

On 4 March, the Digital Markets Competition and Consumers Act 2024 (Commencement No.2) Regulations 2025 (Regulations) were made. These bring large parts of the consumer protection regime changes under the DMCCA into force, mostly from 6 April 2025, as follows:

Part 3 DMCCA – consumer law enforcement

Part 4, Chapter 1 – replacement of the Consumer Protection from Unfair Trading (CPUT) Regulations. However, ss232, 234 and 235(2) which relate to consumer rights of redress, will not come into force until regulations under s233 (setting out specific rights and remedies) have been made. Until this time, the remedies under the CPUT Regulations will continue to apply. See our article for more.

Part 5, Chapter 3 – the duty of expedition on the CMA and sectoral regulators.

Schedules and consequential amendments relating to the above sections.

From 1 January 2026, (to the extent they are not in force immediately before that date), Part 4, Chapter 3 and related schedule 24, which deal with protection of consumer saving schemes (eg Christmas saving clubs) will come into effect.

Enforcement

The Digital Markets, Competition and Consumers Act 2024 (CMA Consumer Enforcement Rules) Regulations 2025, were made on 4 March 2025 and laid before Parliament on 7 March 2025. They will come into force on 6 April 2025.

The Regulations set out rules which apply when the CMA carries out an investigation into an infringement of consumer protection laws listed in Schedule 16 of the DMCCA. There are some minor changes to the Regulations following consultation, including that:

A provision excepting the CMA from having to provide access to documents following a provisional infringement notice on the grounds of public interest has been deleted.

The CMA may now publish online interface notices in addition to final infringement notices on its website.

The CMA is now required to wait for representations from a group company prior to imposing a penalty on it.

On 14 March 2025, the CMA published the final version of its CMA200 guidance which sets out how the CMA will use its direct consumer enforcement powers under the DMCCA. The guidance supplements the CMA58 Consumer Protection: Enforcement Guidance. It will apply from 6 April 2025 and covers issues including:

the enforcement process

the use and acceptance of undertakings, settlements and remedies

penalties including for administrative enforcement for failures to comply with the requirements set by the CMA

how the CMA will make decisions and handle complaints.

The CMA will publish more on its approach to enforcement before the Regulations come into force, including as to its enforcement priorities for the first year alongside final guidance. Speaking at the techUK Tech Policy Conference, Sarah Cardell, Chief Executive of the CMA, spoke about early priorities, saying:

The guidance on unfair commercial practices will be streamlined and published in final form in early April.

There will be a phased approach to guidance on drip pricing. In April, the CMA will provide a clear framework for complying with parts of the law which are already well understood and largely unchanged.

For aspects of the drip pricing guidance that have created more uncertainty eg fixed-term periodic contracts, there will be further consultation on revised draft guidance in the summer with a view to producing finalised guidance in autumn. Until then the only enforcement the CMA will take in relation to drip pricing will relate to breaches of the law in line with the April guidance.

There will be an enforcement holiday for the first three months of the new 'fake reviews' regime during which time the CMA will focus on supporting businesses with compliance.

Early enforcement action is likely to focus on the "most egregious" breaches, for example, aggressive sales practices targeting vulnerability, providing objectively false information to consumers, and contract terms that are obviously imbalanced or unfair.

The approach to those trying to do the right thing is likely to be understanding and enforcement action will be proportionate and will take into account where businesses have taken proactive steps to remedy infringing conduct.

In light of the CMA's approach, the ASA published an update on enforcement as a result of the DMCCA on 21 March 2025. CAP and BCAP have been consulting on the implication of the changes to the UK's unfair commercial practices regime for their Codes, however, until the review of the CAP and BCAP Codes has been completed, marketers are advised to refer to the current unfair commercial practices provisions when preparing ads. The ASA will also have regard to them when applying affected rules. Once the CMA publishes guidance on the new regime, the ASA will then take it into account. The ASA will only take enforcement action on drip pricing issues against ads that clearly breach the rules and do not engage aspects which fall within the scope of the CMA's re-consultation and until the CMA publishes final guidance. For the next three months after 6 April and in line with the CMA's approach, the ASA will focus on supporting businesses rather than enforcement in relation to the new rules on fake reviews, however it will continue to apply existing rules on testimonials and endorsements.