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

The question

Where will the CMA focus its new enforcement powers under the Digital Markets, Competition and Consumer Act 2024 (DMCCA)? And what are the CMA’s consumer protection priorities?

The key takeaway

The CMA has wide-ranging new enforcement powers under the DMCCA including the ability to investigate and decide upon consumer law breaches and to issue fines of up to 10% of global turnover. In the early stages of the new regime, enforcement will focus on the most clear and serious infringements, while allowing businesses a short grace period for areas of greater legislative uncertainty, such as fake reviews and drip pricing.

The background

In March 2025, the CMA published guidance on its direct consumer law enforcement powers under Part 3 of the DMCCA, which came into force on 6 April 2025. This follows the draft guidance published last year and sets out the enforcement process, from the power to launch direct investigations to its provisional infringement notices against traders, which may lead to a final infringement notice depending on the representations made by the trader under investigation. The CMA also provides guidance on its use and acceptance of undertakings, settlement and remedies, its power to enforce monetary penalties (up to 10% of global annual turnover) as well as an insight into their decision-making and handling of complaints. For a detailed analysis see our Autumn 2024 Snapshots article on the draft guidance.

The development

In addition to the guidance, the CMA has recently set out its approach to consumer protection, including establishing its enforcement priorities for the first 12 months under the DMCCA, as well as how the CMA will apply the “4Ps” framework (Pace, Predictability, Proportionality and Process) to the new consumer protection regime. The CMA understands that businesses now face significant consequences of non-compliance and will therefore focus its efforts on the “more egregious practices” in the early enforcement period. These include: (i) aggressive sales practices that prey on the vulnerable; (ii) providing objectively false information to consumers; and (iii) obviously imbalanced and unfair contractual terms.

Further, in relation to the new banned practice regarding fake reviews, for the first three months (ie until 6 July 2025), the CMA will support businesses to comply with the new rules, rather than enforcing punitively. It will also take a “phased approach” to the drip pricing provisions, with enforcement in respect of aspects of drip pricing that have created more uncertainty only beginning after separate guidance is published in the Autumn.

On 6 April 2025, the CMA also updated its consumer protection regime guidance (CMA58) to clarify how its new direct enforcement powers sit alongside the broader enforcement regime - for example, when it will decide to use the new powers or continue to enforce through the courts. The guidance outlines the CMA’s role and powers in terms of consumer protection, its approach to enforcement and its partnerships with other consumer protection bodies.

Regarding penalties for infringements of the consumer protection provisions, the CMA has acknowledged that fines are likely to be lower in the initial period of the new regime, given that the DMCCA does not apply retrospectively to activity that took place prior to 6 April. However, the CMA has confirmed that it may have regard to the conduct of businesses before the DMCCA came into force when determining penalties, such as previous failures to comply with an enforcement action.

Why is this important?

The CMA’s guidance and its published approach provides a useful road map for enforcement of the DMCCA in the short term. The CMA’s initial focus on high-impact infringements and its transitional approach to newer rules like fake reviews and drip pricing signal both an opportunity for early compliance and a warning to businesses to prioritise their consumer law obligations or face enforcement action.

Any practical tips?

Businesses should familiarise themselves with the CMA’s enforcement guidance and the approach to ensure compliance with their obligations under the DMCCA. They should also have internal procedures in place to ensure future compliance, such as having appropriate policies in place, providing regular staff training and ensuring compliance by design for all aspects of their consumer facing activities (eg user journeys on e-commerce stores).

Spring 2025