UK update - New consumer protection measures introduced in April 2025
On 6 April 2025, new consumer protections were introduced in the UK implemented by the Digital Markets, Competition and Consumers Act 2024 (DMCCA). Direct enforcement powers will be given to the UK Competition and Markets Authority (CMA), allowing fines of up to 10% of global turnover to be implemented for infringement of consumer law.
The DMCCA will apply to overseas entities, including in Iceland, who are selling goods and services online to consumers in the UK. The DMCCA also creates new rules in the following areas as of 6 April 2025:
- Pricing: The rules particularly relate to drip pricing. This is where a low price is indicated on the business’ website, but unavoidable charges are added later in the purchasing processes. This is particularly likely to apply to businesses involved with travel and ticket sales. Further guidance in relation to the CMA’s approach to dealing with drip pricing is likely to be published later this year.
- Fake reviews: Use of fake reviews by businesses is effectively prohibited. Businesses should also take “reasonable and proportionate steps” to avoid publishing consumer reviews in a misleading manner.
Rules requiring greater transparency for consumers in relation to subscription arrangements are also due to change in 2026 (e.g. requiring reminders to be sent before auto-renewals occur). A review of these rules should be undertaken alongside IT systems to prepare for compliance when the rules are implemented.
Enforcement
As noted above, the CMA will have significant powers to investigate and fine businesses. The regulator has indicated that it will initially take action in relation to the “most egregious breaches” which target vulnerable people and provide objectively false information.
The CMA has indicated indication that enforcement on fake reviews will be delayed until July 2025.
Next steps
Although some of the new rules are similar to those implemented by the EU, they are not the same so should be considered in detail. If you are operating in the UK and have any questions or concerns about your current operations and practices, please contact our London team.
On 6 April 2025, new consumer protections were introduced in the UK implemented by the Digital Markets, Competition and Consumers Act 2024 (DMCCA). Direct enforcement powers will be given to the UK Competition and Markets Authority (CMA), allowing fines of up to 10% of global turnover to be implemented for infringement of consumer law.
The DMCCA will apply to overseas entities, including in Iceland, who are selling goods and services online to consumers in the UK. The DMCCA also creates new rules in the following areas as of 6 April 2025:
- Pricing: The rules particularly relate to drip pricing. This is where a low price is indicated on the business’ website, but unavoidable charges are added later in the purchasing processes. This is particularly likely to apply to businesses involved with travel and ticket sales. Further guidance in relation to the CMA’s approach to dealing with drip pricing is likely to be published later this year.
- Fake reviews: Use of fake reviews by businesses is effectively prohibited. Businesses should also take “reasonable and proportionate steps” to avoid publishing consumer reviews in a misleading manner.
Rules requiring greater transparency for consumers in relation to subscription arrangements are also due to change in 2026 (e.g. requiring reminders to be sent before auto-renewals occur). A review of these rules should be undertaken alongside IT systems to prepare for compliance when the rules are implemented.
Enforcement
As noted above, the CMA will have significant powers to investigate and fine businesses. The regulator has indicated that it will initially take action in relation to the “most egregious breaches” which target vulnerable people and provide objectively false information.
The CMA has indicated indication that enforcement on fake reviews will be delayed until July 2025.
Next steps
Although some of the new rules are similar to those implemented by the EU, they are not the same so should be considered in detail. If you are operating in the UK and have any questions or concerns about your current operations and practices, please contact our London team.
On 6 April 2025, new consumer protections were introduced in the UK implemented by the Digital Markets, Competition and Consumers Act 2024 (DMCCA). Direct enforcement powers will be given to the UK Competition and Markets Authority (CMA), allowing fines of up to 10% of global turnover to be implemented for infringement of consumer law.
The DMCCA will apply to overseas entities, including in Iceland, who are selling goods and services online to consumers in the UK. The DMCCA also creates new rules in the following areas as of 6 April 2025:
- Pricing: The rules particularly relate to drip pricing. This is where a low price is indicated on the business’ website, but unavoidable charges are added later in the purchasing processes. This is particularly likely to apply to businesses involved with travel and ticket sales. Further guidance in relation to the CMA’s approach to dealing with drip pricing is likely to be published later this year.
- Fake reviews: Use of fake reviews by businesses is effectively prohibited. Businesses should also take “reasonable and proportionate steps” to avoid publishing consumer reviews in a misleading manner.
Rules requiring greater transparency for consumers in relation to subscription arrangements are also due to change in 2026 (e.g. requiring reminders to be sent before auto-renewals occur). A review of these rules should be undertaken alongside IT systems to prepare for compliance when the rules are implemented.
Enforcement
As noted above, the CMA will have significant powers to investigate and fine businesses. The regulator has indicated that it will initially take action in relation to the “most egregious breaches” which target vulnerable people and provide objectively false information.
The CMA has indicated indication that enforcement on fake reviews will be delayed until July 2025.
Next steps
Although some of the new rules are similar to those implemented by the EU, they are not the same so should be considered in detail. If you are operating in the UK and have any questions or concerns about your current operations and practices, please contact our London team.