Commencement of the CMA's new enforcement powers and unfair commercial practices regime

Overview: On 6 April 2025, a new consumer enforcement regime came into force in the UK. As well as providing the Competition and Markets Authority with new direct enforcement powers (including the ability to impose fines of up to 10% of global turnover), action can also now be taken in relation to new banned unfair commercial practices of fake reviews and drip pricing.

Full article:

On 6 April 2025, the Competition and Markets Authority's (CMA) new direct enforcement powers and the updated Unfair Commercial Practices (UCP) regime came into force, under the Digital Markets, Competition and Consumers Act 2024 (Act).

The CMA can now enforce consumer protection law itself through a range of measures such as fines (potentially of up to 10% of global turnover) and undertakings, as well as going to court.

To assist businesses with navigating the new regime, the CMA has issued updated guidance on:

• How businesses can comply with the UCP provisions, with a short guide detailing unfair activities and specific examples of unfair practices. 
• The CMA's role, functions and powers for consumer protection generally (replacing previous and now outdated guidance).
• How the CMA will use its new direct consumer enforcement powers.
• The CMA's approach to consumer protection, covering: (i) the CMA's ambition for consumer protection, (ii) priority areas, (iii) how the CMA will reflect the Government's Strategic Steer and the CMA's '4Ps' (four principles) framework (pace, predictability, proportionality and process) and (iv) what businesses, consumer groups, and other UK bodies with consumer protection powers can expect.
• How businesses can comply with the rules on fake reviews and the obligation to prevent and remove banned reviews, as well as false or misleading consumer review information.

Alongside the above, the Government's Department for Business & Trade (DBT) has published a Strategic Steer to the CMA setting out the Government's expectations for how the CMA should use its new powers and implement the UCP regime. The CMA also published a joint statement with the DBT on how its approach will align with the Government's priorities.

We have previously summarised the ASA's consultation on amendments to the UK's advertising rules (BCAP and CAP Codes), which proposed changes to the Codes to align with the Act. The ASA has now published the final rules which incorporate the new UCP regime – their regulatory statement summarises all of the amendments that have been made to the Codes. 

Authors:

Stuart Lester, Partner
Email: stuart.lester@mishcon.com

Georgina Doukanaris, Associate
Email: georgina.doukanaris@mishcon.com