6 April: consumer law fines and other changes

We have previously flagged the broad implementation timetable for various consumer law changes being introduced by the Digital Markets, Competition and Consumers Act 2024, including the provisions relating to the new duties to tackle fake and misleading reviews. The CMA has now confirmed further details regarding the commencement of a number of these provisions as follows:

• New enforcement powers including provisions allowing the CMA to impose civil fines of up to 10% of turnover for breach of consumer laws will come into force on 6 April 2025.
• The updated unfair commercial practices regime (which will replace the Consumer Protection from Unfair Trading Regulations 2008 “CPRs”) will also take effect on 6 April. The CAP and BCAP advertising codes will be updated to reflect the changes.  The CPRs provisions concerning consumer redress claims are expected to remain in effect for a transitional period until the Government makes further regulations covering that aspect.
• Before 6 April the CMA will publish:
  • Streamlined guidance on the new unfair commercial practices regime
  • Procedural guidance on the CMA’s direct enforcement powers
  • Broader guidance setting out how the direct enforcement regime fits with the wider consumer protection landscape 
  • An “approach document” setting out an overview to the CMA’s intended approach, including its enforcement proprieties for the first 12 months of the new regime being to focus on the “most egregious harms”.
• There does not appear to have been an indication yet about whether the CMA will update any parts of the specific guidance that it has issued to the higher education sector. This may happen in due course.
• As regards the unfair commercial practices provisions:
  • On the measures intended to tackle fake reviews, for the first three months of the new regime the CMA says it will focus on supporting organisations with their compliance rather than enforcement.
  • In summer 2025 the CMA will consult further on more complex aspects of the “drip pricing” regime including how it applies to fixed-term periodic contracts, intending to publish further guidance in autumn 2025. Drip pricing occurs when the consumer is provided an initial price for the good or service, with additional fees being revealed later in the transaction process. Pending that more detailed guidance, the CMA will limit the enforcement action it takes in this area to those covered in its April guidance.

The regulations made by the Government bringing the above provisions into effect also provide that the provisions concerning consumer savings schemes will come into effect from 1 January 2026. The new subscription contracts regime is expected to take effect “not before Spring 2026 at the earliest”.

If you require advice on any aspect of consumer law compliance, please contact Katrina Anderson or Kate Allan.