Reactive (response to change)

CMA direct consumer enforcement powers from April 2025: what businesses need to know

From 6 April 2025, the Competition and Markets Authority can directly enforce consumer protection law and issue fines of up to 10% of global turnover without going to court. The Digital Markets, Competition and Consumers Act 2024 bans fake reviews, drip pricing, and aggressive sales tactics targeting vulnerable consumers. The CMA has opened 8 enforcement cases and sent over 100 advisory letters. Businesses must review pricing practices, review management, marketing claims, and contract terms now.

Change event: CMA direct consumer enforcement powers from April 2025 under Digital Markets, Competition and Consumers Act Effective 6 April 2025

The Digital Markets, Competition and Consumers Act 2024 received Royal Assent on 24 May 2024. Part 3 (enforcement of consumer protection law) and Chapter 1 of Part 4 (protection from unfair trading) commenced on 6 April 2025.

This represents the most significant strengthening of consumer protection enforcement in a generation. The Competition and Markets Authority (CMA) now has direct powers to investigate consumer law breaches, issue fines of up to 10% of worldwide turnover, and order businesses to change their practices — all without needing to go to court first.

The previous system required the CMA to seek court orders before taking enforcement action. This was slow, expensive, and meant many breaches went unpunished. The new powers enable swift, decisive action against businesses harming consumers.

What has changed: direct enforcement without court proceedings

Before 6 April 2025, the CMA had to apply to court for enforcement orders against businesses breaching consumer protection law. Enforcement could take years, and penalties were limited.

The new regime gives the CMA administrative powers to:

  • Investigate directly: Open cases without needing court permission
  • Impose fines: Up to £300,000 or 10% of worldwide annual turnover (whichever is higher)
  • Issue daily fines: Up to 5% of daily worldwide turnover for continued non-compliance
  • Issue enforcement orders: Requiring businesses to stop unlawful practices and take corrective action
  • Order compensation: Require businesses to compensate affected consumers
  • Accept commitments: Negotiate binding commitments from businesses to change their practices

Businesses still have procedural protections — including the right to make representations and appeal to the Competition Appeal Tribunal — but the burden of proof and speed of action has shifted decisively towards enforcement.

Maximum fine per infringement
£300,000 or 10% of worldwide annual turnover (whichever is higher)
Daily penalty for continued breach
Up to 5% of daily worldwide turnover
Effective date
6 April 2025
Enforcement cases opened (as of November 2025)
8 businesses under investigation
Advisory letters sent
100+ businesses across 14 sectors
Legislation
Digital Markets, Competition and Consumers Act 2024 (c.13)

New banned practices: fake reviews, drip pricing, and aggressive targeting

The Act creates three new categories of prohibited practice that the CMA is actively prioritising in its enforcement work.

1. Fake reviews (criminal offence)

It is now a criminal offence to:

  • Commission or submit fake consumer reviews
  • Pay for positive reviews without clear disclosure
  • Offer incentives (discounts, free products, entry to prize draws) for reviews without prominent disclosure
  • Impersonate consumers by writing reviews as if from genuine purchasers
  • Selectively publish only positive reviews while suppressing negative feedback
  • Trade in fake reviews — buying, selling, or hosting platforms that facilitate fake reviews

This applies to all consumer-facing businesses — online retailers, service providers, platforms hosting third-party reviews, and businesses commissioning reviews on their behalf (including through agencies or intermediaries).

2. Drip pricing (prohibited practice)

Drip pricing is the practice of advertising a headline price, then adding unavoidable fees progressively through the checkout process so the final price is significantly higher.

Under the Act, businesses must display the total price upfront, including all mandatory charges such as:

  • Booking fees
  • Service charges (where mandatory)
  • Payment processing fees for the only available payment method
  • Delivery charges (where only one delivery option exists)

Optional extras can still be offered during checkout (such as insurance, express delivery options, or premium features), but the core price including unavoidable costs must be clear from the outset.

3. Aggressive sales tactics targeting vulnerable consumers

The Act strengthens protections against aggressive commercial practices, particularly those exploiting vulnerable consumers. Businesses cannot:

  • Use harassment, coercion, or undue influence to pressure consumers into purchasing
  • Deliberately target recently bereaved, elderly, or mentally vulnerable consumers with high-pressure sales
  • Create false urgency through misleading claims about limited availability or time-sensitive offers
  • Make contract cancellation unreasonably difficult (requiring excessive documentation, ignoring cancellation requests, or charging unjustified fees)

⚠️ Penalty scale: up to 10% of global turnover

The 10% turnover cap is calculated on worldwide annual turnover, not just UK revenue. For multinational businesses, a breach in the UK consumer market can result in penalties based on the entire global business.

The CMA has confirmed it will use these powers robustly. In November 2025, it opened 8 enforcement cases and sent advisory letters to over 100 businesses warning of potential non-compliance.

Unlike competition law fines (which have a small business exemption for companies under £20 million turnover), there is no small business exemption for consumer protection breaches. Sole traders, SMEs, and large corporations are all subject to the same penalty regime.

What the CMA is prioritising: enforcement focus areas

The CMA has published its enforcement priorities for the first 12 months under the new powers. Businesses operating in these areas face heightened scrutiny:

  • Online pricing practices: Drip pricing, misleading discounts ('was/now' pricing), false scarcity claims, hidden subscription renewals
  • Fake and incentivised reviews: Commissioned reviews, selective publication, undisclosed incentives, review trading platforms
  • Unfair contract terms: Terms attempting to exclude statutory consumer rights, unreasonable cancellation barriers, automatic renewals without clear disclosure
  • Misleading environmental claims: Greenwashing, unsubstantiated sustainability claims, misleading carbon offset or net zero claims
  • Vulnerable consumer exploitation: Targeting elderly or bereaved consumers, exploiting financial distress, aggressive doorstep selling

The CMA's enforcement cases opened in November 2025 span hotels, online retail, subscription services, and ticket resale platforms. More cases are expected as the CMA builds its enforcement track record.

Subscription contract provisions: delayed until autumn 2026

Chapter 2 of Part 4 of the Act introduces significant new protections for subscription contracts, including:

  • Enhanced pre-contract information requirements (clear disclosure of renewal terms, total cost over minimum period, how to cancel)
  • Reminder notices before automatic renewal (at least 2 weeks before, stating renewal date, amount, and how to cancel)
  • Easier cancellation mechanisms (online cancellation must be as easy as sign-up, no phone-only cancellation for online services)
  • Cooling-off periods for subscription contracts

These provisions have not yet commenced. The Government expects to bring them into force in autumn 2026 following secondary legislation setting detailed requirements.

However, businesses offering subscription services should begin preparing now. The CMA has indicated it will scrutinise subscription practices under existing consumer protection law pending the full subscription regime coming into force.

ℹ️ Consumer savings provisions (from 1 January 2026)

Chapter 3 of Part 4 (consumer savings protections) commenced on 1 January 2026. This strengthens protections for consumers with savings accounts, requiring providers to offer fair interest rates and give clearer information about switching.

These provisions are primarily relevant to financial services providers and are regulated by the Financial Conduct Authority (FCA), not the CMA.

What businesses must do now: immediate compliance actions

All consumer-facing businesses should take the following steps to ensure compliance with the new regime:

1. Audit pricing practices

  • Review your website and checkout process to ensure the total price (including all mandatory fees) is displayed upfront before the consumer commits to purchase
  • Eliminate drip pricing — move booking fees, service charges, and unavoidable delivery costs into the initial price display
  • Check 'was/now' pricing claims are accurate and can be substantiated (the CMA scrutinises whether the 'was' price was genuinely offered for a meaningful period)
  • Remove false scarcity claims ('only 3 left' when stock is plentiful, countdown timers that reset)

2. Review review management practices

  • If you collect customer reviews, ensure they are genuine and unpaid
  • If you offer incentives for reviews (discounts, entry to prize draws), ensure this is clearly disclosed at the point of solicitation and on the published review
  • Publish negative reviews as well as positive feedback — selective publication is now a criminal offence
  • Remove any commissioned or fake reviews immediately
  • If you work with review platforms or agencies, ensure they comply with the new rules

3. Check contract terms and cancellation processes

  • Review your terms and conditions to ensure they do not attempt to exclude or restrict statutory consumer rights under the Consumer Rights Act 2015
  • Make cancellation straightforward — if a consumer can sign up online, they must be able to cancel online (no phone-only cancellation)
  • Remove unreasonable barriers to cancellation (excessive documentation requirements, ignoring requests, unjustified fees)
  • For subscription services, provide clear information about renewal terms and how to cancel, even though the full subscription regime has not yet commenced

4. Train staff on the new banned practices

  • Ensure customer service, sales, and marketing teams understand what constitutes fake reviews, drip pricing, and aggressive practices
  • Provide specific guidance on vulnerable consumer protections — staff should recognise when high-pressure tactics cross the line into unlawful conduct
  • Update compliance policies and procedures to reflect the new regime

❗ Compliance action checklist

  1. Review your website checkout process: Ensure total price including all mandatory fees is displayed before purchase. Remove drip pricing from your checkout flow.
  2. Audit your review collection practices: Check reviews are genuine, unpaid, and balanced. If offering incentives, ensure clear disclosure. Remove fake reviews immediately.
  3. Check contract terms for unfair exclusions: Review terms and conditions to ensure they do not attempt to exclude statutory consumer rights. Update if necessary.
  4. Simplify cancellation processes: Make cancellation as easy as sign-up. Remove unreasonable barriers and ensure online cancellation is available for online services.
  5. Train staff on new banned practices: Provide training on fake reviews, drip pricing, and aggressive practices. Update compliance policies.
  6. Document compliance procedures: Keep records of pricing audits, review management policies, and staff training. This demonstrates due diligence if the CMA investigates.

❗ This is UK-wide enforcement

The CMA's new powers apply across the United Kingdom — England, Scotland, Wales, and Northern Ireland. All consumer-facing businesses operating in the UK market are subject to the same requirements.

Local Trading Standards services (or the Department for the Economy in Northern Ireland) continue to enforce consumer protection law at a local level, but the CMA now has UK-wide direct enforcement powers for significant or systemic breaches.