CMA’s enforcement road map for the new DMCCA plus consumer protection priorities

The question

What practical guidance is given by the CMA on unfair commercial practices under the Digital Markets, Competition and Consumers Act 2024 (DMCCA)?

The key takeaway

The CMA’s guidance on unfair commercial practices has recently been published following a consultation period. It sets out key steps and recommendations for businesses to ensure compliance with the new consumer law provisions under the DMCCA which is now in force.

The background

The consumer protection provisions under the DMCCA came into force on 6 April 2025, replacing the previous regime under the Consumer Protection from Unfair Trading Regulations 2008 (CPRs). See our Autumn 2024 Snapshots article for more information on the DMCCA. Like the CPRs, the DMCCA sets out a number of provisions prohibiting unfair commercial practices, such as misleading consumers, behaving aggressively or otherwise acting unfairly towards consumers. The DMCCA distinguishes between two main types of unfair commercial practice:

• those which are unfair if they are likely to cause the average consumer to take a transactional decision they would not otherwise have taken (such as providing consumers false or misleading information about a product or service), and
• those which are always considered to be unfair regardless of their likely impact on average consumers (the so-called “banned list”), such as publishing fake reviews or implementing “drip pricing” – as listed in Schedule 20 of the DMCCA.

  The development

  To assist businesses with compliance, on 4 April 2025 the CMA published guidance on unfair commercial practices under the DMCCA. As part of the consultation, the CMA explored the widened scope of key definitions such as “consumer practices” and “transactional decision”, as well as streamlined legal tests for misleading actions and omissions, all of which make it easier for the CMA to pursue businesses for breaches of consumer protection law. The large number of consultation responses on the topic of drip pricing have led to the CMA confirming that it will consult on detailed specific guidance on this over the Summer, with a view to final guidance being published in Autumn 2025.

  Fake consumer reviews

  The DMCCA introduces detailed prohibitions relating to reviews not based on genuine experiences or misleading consumer reviews (including concealed incentivised reviews). These may be reviews in text, speech or a star rating. The DMCCA places a positive obligation on businesses to take “reasonable and proportionate” steps to prevent and remove these types of reviews. In addition to the CMA’s general guidance on unfair commercial practices, it has published separate guidance concerning fake reviews.

  The CMA suggests the following steps for businesses to ensure compliance:

• the publication and implementation of a clear policy banning fake or misleading reviews, and setting out the business’s approach to incentivised reviews (either not allowing in any circumstances or allowing them but requiring them to be clearly and prominently disclosed)
• conducting regular risk assessments of consumers being exposed to fake or misleading reviews on the business’s platform, and
• taking a proactive approach – putting in place systems and processes to mitigate, identify and address the risks. For example, clear rules on who can submit reviews, requiring conditions such as verification of accounts or the fact that the consumer has purchased or used the product or service. Businesses should also try to deter fake reviews by taking strong action in response (ie appropriate sanctions).

Drip pricing

The DMCCA prohibits drip pricing (when a consumer is shown an initial price upfront for a product/service but incurs additional charges later in the transaction process). Businesses must now show a headline price which incorporates any “mandatory charges” at the invitation to purchase stage. Mandatory charges are any charges that a consumer must pay to purchase, receive or use the advertised product. If a mandatory charge cannot reasonably be calculated in advance (ie goods sold by unit measures), the consumer must be given information on how the total price will be calculated. This information must be displayed as prominently as the headline price (ie not in small print) or, if this is genuinely not practicable, in as close proximity as possible - “no more than one click away”. In summary, traders must overcome any limitations in time and space resulting from the medium the product is advertised on.

The CMA’s approach to the drip pricing provisions in the draft guidance it consulted on has caused rumbles among businesses. Retailers have pointed out circumstances where, for example, delivery fees cannot genuinely be calculated in advance if they are calculated based on various factors such as minimum basket spend, membership costs and delivery location (such that it will be difficult for retailers to give all this information at the invitation to purchase stage without overloading customers). In response, the CMA has subsequently announced that a further consultation will be run in the Summer to finalise more detailed guidance on the finer nuances of the drip pricing rules in Autumn. Until then, the CMA will only enforce clear and obvious breaches of the drip pricing provisions.

Why is this important?

The guidance sets out the CMA’s expectations for businesses and practical steps to ensure compliance with unfair commercial practices under the new consumer protection regime. This is particularly important given that the CMA will have direct investigatory and enforcement powers, including the power to issue fines of up 10% of global turnover for breach of consumer protection laws.

Any practical tips?

Now that the DMCCA is in force, businesses should be well underway in their efforts to ensure compliance and have in place policies, procedures and systems for continuing compliance. The CMA’s guidance should be considered carefully by businesses to ensure that their current practices will not be considered “unfair” by the CMA, and changes implemented if required. Whilst many of the prohibited unfair commercial practices under the DMCCA are the same as under the old CPRs regime, the risk landscape is significantly increased now because of the CMA’s direct enforcement powers and its well-publicised intent to clamp down on businesses engaging in practices that harm consumers.

Spring 2025