Retail & Consumer Goods Trading standards and consumer law

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.

UK-wide
Guide summary

If the CMA or Trading Standards investigates your business for breaking consumer protection laws, you must respond quickly. Keep all documents, reply to information requests on time, and get legal advice. From April 2025, the CMA can fine you up to 10% of your worldwide turnover without going to court.

  • Keep all documents if investigated
  • Reply to CMA requests fully and on time
  • Get legal advice immediately
  • CMA fines up to 10% of turnover from April 2025
  • Daily penalties for non-compliance: 5% of turnover
  • Trading Standards can inspect premises and prosecute
  • Offer undertakings to avoid formal proceedings
  • Compensate affected consumers if required
  • Check business practices against consumer law
  • Monitor complaints for early warnings
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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 5% of global turnover (plus daily penalties for continuing breaches). The higher 10% cap applies to the substantive consumer law infringement itself.

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
  1. 1

    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.

  2. 2

    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.

  3. 3

    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.

  4. 4

    Assess whether early engagement and undertakings are appropriate

    Discuss with your lawyers whether proactively offering undertakings could resolve the matter before formal proceedings.

  5. 5

    Calculate your full financial exposure

    Understand your maximum penalty exposure - up to 10% of global annual turnover. Also quantify potential redress obligations.

  6. 6

    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.

Official guidance