CMA gains new powers to enforce consumer protections

The Competition and Markets Authority (CMA) has gained new powers to enforce consumer protections as new rules for trading online take effect.

New consumer protections set out in the Digital Markets, Competition and Consumers Act 2024 (DMCCA) include an explicit ban on posting and commissioning fake reviews and a ban on so-called ‘drip pricing’, where added costs and service charges are hidden until late in the buying process.

The CMA has also been granted additional powers to tackle any breaches directly, including through consumer redress and fines, rather than litigating through the courts. To ensure businesses – large and small – have clarity and predictability around implementation of the new regime, the CMA has published an ‘Approach to Consumer Protection’ setting out priority areas of enforcement, and its intention to take a proportionate approach and minimise compliance burdens on businesses.

Sarah Cardell, Chief Executive of the CMA, said:

“Consumers deserve to know that the CMA has their back; and fair-dealing businesses looking to grow and invest deserve to know that their competitors are playing by the same rules. We will use the new regime to strengthen the trust and confidence of consumers and businesses – supporting economic growth and incentivising good corporate practice.

“Most businesses work hard to serve their customers and do the right thing. We recognise the importance, particularly for small businesses, of any new rules being clear and proportionate to comply with – and that this is a period of change when they may need help to understand their legal obligations. We’re working hard to support them with that and keep burdens to a minimum – through accessible guidance and communications, as well as direct engagement – alongside listening and responding to feedback.“