Guide
Prepare for CMA enforcement action
What to expect if the Competition and Markets Authority or Trading Standards investigates your business for consumer protection breaches. Covers the investigation process, new direct fining powers from April 2025, undertakings, enhanced consumer measures, and how to respond effectively.
If you receive any communication from the CMA or Trading Standards suggesting an investigation, seek specialist legal advice immediately. The steps you take in the early stages can significantly affect the outcome.
Consumer protection enforcement in the UK is carried out by two main bodies: the Competition and Markets Authority (CMA) and local Trading Standards services. From 6 April 2025, the Digital Markets, Competition and Consumers Act 2024 (DMCC Act) has given the CMA powerful new tools to enforce consumer law directly, including the ability to impose substantial fines without going to court.
What triggers a CMA investigation
- Consumer complaints: A pattern of complaints to Citizens Advice, Trading Standards, or the CMA itself
- Market intelligence: CMA monitoring including online price tracking and mystery shopping
- Referrals from other regulators: Including Ofcom, FCA, and sector regulators
- Media coverage: Widespread negative press about business practices
- Whistleblowers: Current or former employees reporting concerns
Trading Standards: the local enforcement layer
Trading Standards services operated by local authorities are the primary enforcement body for most consumer protection breaches. They can investigate complaints, enter and inspect premises, require documents, prosecute criminal offences, and issue civil enforcement orders.
Where a pattern of breaches affects consumers nationally, Trading Standards can refer cases to the CMA.
New enforcement powers from April 2025
The DMCC Act fundamentally changed how the CMA enforces consumer protection law. Previously, the CMA could only take action through the courts. From 6 April 2025, the CMA has direct administrative enforcement powers - it can investigate, decide, and impose penalties without court proceedings.
Daily penalties during investigation
The DMCC Act introduces daily penalties for non-compliance with CMA investigation requirements. If your business fails to respond to information requests, obstructs an investigation, or breaches interim measures, the CMA can impose penalties of up to 5% of daily worldwide turnover for each day of non-compliance.
The CMA investigation process
Stage 1: Opening an investigation
The CMA publishes a notice confirming it has opened an investigation. The business under investigation is usually informed directly.
Stage 2: Information gathering
The CMA can require businesses to provide information, documents, and data. You must preserve all relevant documents from the moment you become aware of an investigation.
Stage 3: Provisional decision
If the CMA believes a breach has occurred, it issues a provisional decision. Your business can make written representations and attend an oral hearing.
Stage 4: Final decision
The CMA can find a breach and impose financial penalties, directions to stop the conduct, undertakings, or enhanced consumer measures. Decisions can be appealed to the Competition Appeal Tribunal.
Undertakings: negotiating a resolution
At any point during an investigation, your business can offer undertakings - binding commitments to change conduct. This can avoid formal proceedings, reduce penalties, and give you control over remedies.
Undertakings are legally binding. Breaching an accepted undertaking can attract a penalty of up to 10% of global turnover.
Enhanced consumer measures
The CMA can require measures beyond stopping the offending conduct:
- Redress measures: Paying compensation to affected consumers, including those who never complained
- Compliance measures: Implementing internal processes, training, or monitoring
- Choice measures: Giving consumers more information or options
Proactive compliance: reducing your enforcement risk
Businesses with demonstrably strong compliance programmes face lower investigation risk and better outcomes if investigated. A compliance programme is a formal mitigating factor in CMA penalty calculations.
- Audit terms and conditions against unfair terms provisions
- Check pre-contract information and cancellation processes
- Review refund and complaints handling against statutory requirements
- Assess subscription and auto-renewal practices against DMCC Act requirements
- Monitor consumer feedback for early warning signs
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Seek legal advice immediately if contacted by CMA or Trading Standards
Engage specialist consumer law solicitors as soon as you receive any contact suggesting an investigation. Early advice protects your position.
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Preserve all relevant documents and communications
Implement a legal hold - instruct staff not to delete, alter, or conceal any relevant documents, emails, or data. Destroying evidence is a criminal offence.
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Respond to CMA information requests fully and on time
Failing to comply can attract daily penalties of up to 5% of worldwide turnover per day. If you cannot meet a deadline, request an extension promptly.
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Assess whether early engagement and undertakings are appropriate
Discuss with your lawyers whether proactively offering undertakings could resolve the matter before formal proceedings.
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Calculate your full financial exposure
Understand your maximum penalty exposure - up to 10% of global annual turnover. Also quantify potential redress obligations.
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Review your consumer compliance programme
Even if not under investigation, audit your consumer-facing practices. Address gaps proactively - this reduces risk and demonstrates compliance intent.
After a decision: appeals and follow-on claims
CMA decisions can be appealed to the Competition Appeal Tribunal (CAT). A CMA finding can also be used by affected consumers as the basis for civil claims without re-litigating the breach - potentially triggering significant volumes of individual compensation claims.