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The new consumer law enforcement framework under the Digital Markets, Competition and Consumers Act 2024

June 2025

The implementation of the Digital Markets, Competition and Consumers Act 2024 (“DMCC Act”) introduces the most substantial reform of the UK’s consumer protection enforcement framework in recent history. The changes establish a fundamentally new regulatory model by enabling the Competition and Markets Authority (“CMA”) to investigate and determine breaches of consumer law directly, and to impose penalties or remedies without court proceedings.

These new powers are now in effect and signal a move towards faster, more interventionist enforcement. This article explores the legal and practical implications of the reforms, focusing on the scope of the CMA’s powers, procedural mechanisms, transitional arrangements, and the steps businesses should now consider.

Direct enforcement by the CMA

Prior to this reform, enforcement action under most consumer protection legislation required court proceedings, often under Part 8 of the Enterprise Act 2002. The CMA could seek undertakings from businesses or ask a court to issue an enforcement order, but could not itself determine liability or impose penalties.

With the new legislation, a direct enforcement regime has been introduced. The CMA can now determine whether a business has infringed consumer protection law, issue binding findings, and impose financial penalties without court involvement. The CMA can impose financial penalties of up to 10 per cent of global turnover for substantive breaches and up to the greater of one per cent of global turnover or £30,000 for certain procedural infringements. This marks a significant departure from the former enforcement structure and is intended to ensure that the CMA can act swiftly to deter and remedy consumer harm.

Consumer laws in scope

The CMA’s direct enforcement powers apply to specific consumer laws listed in Schedule 16 of the DMCC Act. These include:

• the provisions on unfair commercial practices, formerly found in the Consumer Protection from Unfair Trading Regulations 2008;
• parts of the Consumer Rights Act 2015;
• the Business Protection from Misleading Marketing Regulations 2008; and
• the Electronic Commerce (EC Directive) Regulations 2002.

While many of the underlying legal obligations remain unchanged, the new enforcement model under the DMCC Act creates significantly greater risk exposure for businesses.

Practices targeted under the DMCC Act

A wide range of unfair commercial practices fall within scope, including misleading actions, misleading omissions, aggressive selling techniques, and failures to act with professional diligence. Particular focus is placed on omissions of material information during marketing or sales interactions.

New categories of banned practices have been introduced, including fake consumer reviews and drip pricing, where additional fees are disclosed late in the purchasing process. The DMCC Act lists 32 commercial practices that are categorically deemed unfair, meaning that no further assessment of consumer impact is required.

Investigation and enforcement procedure

The new framework provides a clear procedural framework for enforcement. Investigations begin with the CMA having reasonable grounds to suspect an infringement. It may announce an investigation publicly, naming the parties concerned and outlining the suspected breaches.

Where the CMA provisionally concludes that there has been an infringement, it will issue a Provisional Infringement Notice , which sets out its preliminary findings, proposed remedies, and any intended financial penalties. This notice also informs the business of its right to make representations before a final decision is taken. Businesses are then afforded the opportunity to make those representations and to access the CMA’s case file, subject to confidentiality protections.

Following review of any representations, the CMA may issue a Final Infringement Notice confirming its decision, penalties, and any remedial obligations. In some cases, Enhanced Consumer Measures may be required, which could include requiring businesses to provide redress to consumers, publish corrective statements, or make improvements to internal compliance procedures. These may be imposed alongside or instead of financial penalties.

The CMA may also accept undertakings from businesses at any stage of the process and may engage in settlement discussions where a business admits infringement in exchange for a streamlined procedure and potential penalty reduction.

Administrative penalties for procedural failures

The DMCC Act provides for administrative penalties where businesses fail to comply with investigatory requirements under the CMA’s direct enforcement functions. These may be imposed for failures to respond to statutory information notices, providing false or misleading information, or breaching undertakings or enforcement directions.

Penalties for these failures are separate from those for substantive breaches. They are capped at the greater of £30,000 or one per cent of the business’s global turnover. The CMA will take into account the seriousness of the breach and the degree of culpability when setting any penalty.

Transitional arrangements

The DMCC Act applies to conduct taking place on or after 6 April 2025. For conduct that began before but continued after that date, the CMA may investigate the entire period as a single course of conduct, but any financial penalty may only be imposed in relation to conduct occurring after commencement.

Conduct that concluded prior to 6 April 2025 remains subject to enforcement under the previous legal framework, principally the Enterprise Act 2002. Breaches of undertakings given under the old regime must also continue to be pursued under that framework.

The CMA will apply its published prioritisation principles in determining which enforcement route to pursue in any given case.

Practical implications for businesses

Businesses engaging with UK consumers should take urgent steps to review and update their compliance arrangements. Particular attention should be given to marketing communications, ensuring that all claims are accurate, clear and fully substantiated. This is especially important in areas such as sustainability claims, price promotions, and endorsements.

Consumer-facing terms and conditions should be reviewed to ensure they are transparent, fair, and compliant with consumer protection requirements. Businesses should also review their internal systems to ensure readiness to respond promptly and accurately to CMA information requests.

Staff training programmes should be updated to reflect the expanded risks under the DMCC Act, particularly for sales, marketing, and customer service teams.

Conclusion

The DMCC Act represents a step change in the enforcement of consumer law in the UK. The CMA’s ability to determine breaches, impose penalties and require consumer redress without the need for court action introduces a significantly more active regulatory landscape.

Businesses can no longer afford to rely on reactive compliance measures. Robust internal systems, a proactive approach to legal risk management, and a clear understanding of the CMA’s expectations will be essential to navigate the new regime successfully.

We regularly advise clients on CMA investigations, enforcement matters, and consumer compliance risks. Our team is well-versed in supporting businesses with regulatory engagement, including information requests, unfair commercial practices, and compliance reviews.

To discuss how these changes may affect your business, please get in touch with Paul Henty or Deen Taj.

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