CMA publishes guidance on complying with consumer law when using AI agents
On 9 March 2026, the CMA published guidance on complying with consumer law when using AI agents – more on this in our article here.
Tobacco and Vapes Bill goes through penultimate step in legislative passage
The Tobacco and Vapes Bill completed report stage in the House of Lords on 3 March 2026, marking its penultimate step in the legislative passage before it proceeds to its third reading. (Afterwards will follow potential inter-House consideration of further amendments and finally, Royal Assent.)
Amendments to the Bill at this stage included:
- Some internet service providers were exempt from advertising offences.
- A new defence was added to permit public health campaigns.
- Programmes currently in production won't be caught by some product placement rules which they predate.
- The government should report to Parliament on the Bill's progress between four-seven years after its passing.
Government to align UK setup with EU Machinery Regulation
The Office for Product Safety and Standards (the OPSS) announced its intention to align the UK's machinery safety regime with the EU Machinery Regulation's updated rules on 25 February 2026. The move follows an OPSS call for evidence issued in July 2025 on whether to make the UK rules compatible with their EU counterparts. The EU Machinery Regulations will come into effect on 20 January 2027 and update the existing regime to factor in evolving digital technologies, robotics and artificial intelligence.
The 2025 call for evidence revealed that approximately 94% of respondents backed continued recognition of EU product requirements. In practice, this means those who comply with EU rules and show a CE marking will be allowed to keep placing their products on the UK market. Meanwhile, approximately 90% of respondents voted yes to updating the UK Machinery Regulations to make them compatible with the EU equivalent, backing digitalisation tactics like QR codes and digital product passports as a means of facilitating compliance.
(The OPSS acknowledges that total symmetry is not possible, due to the EU Machinery's Regulation's reference to EU reporting requirements, institutions and language; the updated UK version will also reflect UK recognised conformity assessment bodies and UK conformity marking.)
EC investigates Shein for suspected DSA breach
The European Commission (EC) has opened an official investigation into online retailer Shein over its allegedly addictive design features and non-compliant deployment of recommender systems, plus its suspected failure to stem the sale of illegal products. Shein was designated as a Very Large Online Platform (VLOP) on 26 April 2024, which brought it in the ambit of more stringent consumer protection-related requirements under the DSA in the EU. The EC's investigation was formalised on 17 February 2026.
The EU's Digital Services Act (DSA), among other things, regulates platforms' online interfaces and recommender systems. The EC is considering enforcement against Shein for features which it alleges lend themselves to addictive behaviours, including offering shoppers points or rewards for user engagement. Shein is also compelled under the DSA to disclose the main parameters of its recommender systems and must offer users an alternative recommender system that is not based on profiling.
The company is also being investigated for an alleged failure to prevent illegal products being sold via its platform in the EU, including products which may be deemed to constitute child sex abuse material (CSAM), for example, child-like sex dolls.
The EC is currently in the evidence-gathering stage of its investigation, during which it may initiate RFIs, interviews and/or inspections ahead of potential enforcement action, including interim measures and non-compliance decisions.
First DMCCA fine administered by the CMA
The CMA has imposed a fine of £473,000 on a business which failed to respond to an RFI – more in our article here.
CMA outlines consumer protection priorities under the DMCCA
At a speech during the Global Competition Review’s consumer conference on 10 February 2026, the CMA spoke to the progress it has made and the priorities it holds in the sphere of consumer protection under the DMCCA. Speaker Emma Cochrane's notes highlighted the following efforts:
- Outreach and user-friendly guidance: alongside dialogue-driven engagement efforts including webinars, roundtables and its Consumer Forum, the CMA has published digestible, practical and accessible guidance on a host of topics, from greenwashing across the supply chain to unfair commercial practices guidance.
- Long-term empowerment over immediate enforcement: it aims to set businesses up for success by providing adjustment periods for compliance, like the three-month implementation period for the ban on fake reviews. Once this window elapsed without some businesses making the required changes, the CMA didn't launch straight into enforcement action. Instead, it sent advisory letters to support and encourage businesses to bridge their compliance gaps. Over 90% of recipients reported back to the CMA that they had made changes.
- New powers will be leveraged: the CMA remarked that it won't be forgoing the stick entirely in favour of the carrot, noting that the old regime lacked enforcement powers and that it intends to use the new arsenal of tools at its disposition "thoughtfully, strategically and effectively". The suite of enforcement actions into eight businesses in November 2025 were a signal that "When we say we'll act – we act".
WhatsApp gains VLOP status in the EU
The EC designated Meta-owned WhatsApp Channels as a Very Large Online Platform (VLOP) under the Digital Services Act (DSA) on 27 January 2026. Channels is the part of WhatsApp that lets users share information, updates and announcements widely to fellow users. The private messaging functionality of WhatsApp, which lets users communicate directly with each other or groups, does not constitute an online platform under the DSA. WhatsApp Channels joins fellow Meta-owned platforms Facebook and Instagram, which the EC designated as VLOPs on 25 April 2023.
VLOPs must have 45 million monthly average users in the EU and are subject to the most onerous obligations under the DSA. The compliance deadline is four months after categorisation. Platforms can challenge VLOP designation via the CJEU, albeit with limited success. For example, in September 2025, the General Court of the European Union dismissed Zalando's challenge of its VLOP status under the DSA.
CMA opens consultation on draft revised unfair contract terms
The CMA has consulted on draft guidance and a technical note on the unfair contract terms in the Consumer Rights Act 2015 (CRA). The CRA governs consumer rights when purchasing goods, services and digital content. While the substantive, underlying law has not changed, but the CMA aims to simplify the guidance and update it in line with adjacent legislative developments.
Proposed changes aim to pare back the technical language, streamline the guidance by splitting out some technical content aimed at lawyers and authorities (including detail on legislative background) and updating references to judicial authority, new legislation and the CMA's enforcement powers under the DMCCA. The consultation closed on 19 March 2026.
CMA provides guidance on supply chain greenwashing
Businesses looking to apportion responsibility for environmental claims across the supply chain under consumer protection law should refer to new CMA guidance, which offers further clarity. On 22 January 2026, the CMA shared guidance to supplement its Green Claims Code. It specifies how consumer law applies across the entire spectrum of the supply chain, from raw material to point of sale and clarifies what constitutes making an environmental claim for businesses (including omissions).
The guidance also highlights unbroken chains of accountability. For example, if a manufacturer purports that a product has environmental credentials without substantiation, both the manufacturer and the retailer could be caught by the regulation in some instances. The CMA confirmed it will assess which businesses within the supply chain are relevant when investigating environmental claims. Underscoring this is the requirement for businesses across the supply chain to verify the accuracy of the environmental claims they make.
The guidance offers helpful checklists according for manufacturers, suppliers, retailers and brands selling through third-party retailers.
Less healthy food and drink advertising restrictions take effect
On 5 January 2026, new rules imposing restrictions on advertising "identifiable" less healthy food and drink products came into effect. The new rules ban ads from TV and on-demand programme services between 5.30am and 9pm, and entirely from paid online media at all times. CAP had published the implementing rules on 4 December 2025, with the ASA and Ofcom formally approving them. Advertisers and agencies should note that the brand advertising exemption applies to advertisements that promote a brand, including the brand of a range of products, but does not exempt advertisements that depict a specific less healthy food or drink product.
For advertisers relying on the brand name carve-out, the exception applies only to brands which correspond to a product name that was also the name of a commercial entity established - and using that name - before 16 July 2025, or a product range in use before that date.
Businesses that have not yet completed a full review of their advertising creative and placement strategies in light of these restrictions should do so. The ASA has signalled that enforcement of the new rules is a key priority for 2026.
Consultation responses to Digital Fairness Act published
On 19 December 2025, the EC shared a report on the responses it received following its public consultation on securing digital fairness for businesses and consumers operating in the single market. The outcome of the consultation will feed into the EU’s Digital Fairness Act (DFA), adoption of which is anticipated by the end of 2026.
The EC identified the following priorities:
- Addictive design features: respondents were in favour of turning addictive design features off by default for all users. A smaller minority backed a blanket ban on such features for under-18s.
- Dark patterns: were another focus area, with respondents noting a “false impression of choice” and “ambiguous language” when being presented with a choice.
- Video games: there was support for providers offering more transparency on the odds of winning loot boxes, and providers showing the real-world price of assets brought with virtual currencies.
- Influencer marketing: there were calls for the mandatory disclosure of advertising by influencers, brands to ensure compliance and some claims should be controlled to protect minors.
- Personalised advertising: was another area of concern, with respondents backing stronger consumer protection and, for some, a blanket ban for under-18s and vulnerable consumers.
Interestingly, respondents were less concerned about drip pricing and online subscription contracts requirements, which did not yield majority support. Businesses lobbied for simplification measures, such as paring back pre-contractual information requirements.
