CMA previews new approach ahead of publication of guidance and implementation of consumer enforcement aspects of DMCC on 6 April

In a speech to the techUK Tech Policy Conference 2025, Sarah Cardell, CEO of the Competition and Markets Authority (CMA) previewed the CMA’s new approach to how it will enforce its powers under the Digital Markets, Competition and Consumers Act (DMCCA). In this short update we summarise what this new approach will be and what the next steps should be for businesses affected by the changes.

The CMA views its new powers, coming into force in April 2025, as a way to directly protect consumers, and also grow the economy through promoting consumer trust whilst deterring poor corporate practices. Ms Cardell emphasised that alongside a guidance document that the CMA published on 14 March, it will also set out its enforcement priorities for the next 12 months which will focus on the ‘most egregious harms’. 

What are the CMA’s new powers?

Under the DMCCA the CMA’s new powers allow it to enforce against breaches of consumer protection laws.

Prior to the DMCCA, the CMA’s only option was to enforce breaches of consumer law through the courts. However, under the DMCCA, the CMA has new powers equivalent to those of the civil courts that enable it to determine whether consumer law has been breached and set appropriate penalties and remedies. 

This will allow the CMA to take direct enforcement measures, such as imposing fines and seeking redress, without requiring court proceedings. This approach is designed to be quick, with the aim of improving consumer trust. 

Ms Cardell argues that these powers will also enable the CMA to increase business confidence, as ‘fair-dealing businesses deserve to know that their competitors are playing by the same rules and can’t gain a competitive advantage by breaking the law’. 

Early enforcement action

The CMA has also stated that early enforcement action through the regime is likely to focus on the “most egregious breaches” such as aggressive sales practices that prey on the vulnerable, provide false information to consumers, and utilise unfair contract terms. Ms Cardell argues that this focused approach will allow the CMA to address the most tangible harm to consumers, whilst allowing well-intentioned businesses time to prepare to comply with the published guidance.

The CMA recognises that drip pricing harms consumers and businesses by hindering effective price competition. It therefore plans to run a further consultation relating to drip pricing and produce finalised guidance in the autumn. Until then it will only enforce against drip pricing that clearly breaches the rules, and this will be set out in the April guidance. The DMCCA also bans the practice of fake reviews. 

The CMA recognises that the new provisions may require businesses to adapt their systems and compliance procedures, which may take time. Therefore, the CMA will ‘focus on supporting businesses with their compliance efforts rather than enforcement’ for the first 3 months of the new regime. 

Support for business to comply with new rules

The CMA recognises that most businesses are well-intentioned but may be unclear on the requirements to ensure compliance - especially where the law has been recently updated or is less clear-cut. As a result, using the principle of proportionality the CMA’s enforcement measures will acknowledge where businesses have been proactive to correct their infringements, and ensure that any penalties handed down by the CMA are appropriate. 

Next Steps

As we get nearer to the coming into force of the direct consumer enforcement powers it is helpful that the CMA has set out a preview of where it sees its enforcement priorities in the consumer space over the next 12 months. The accompanying guidance was published on 14 March and we will summarise this in due course.

In addition, the government laid the Digital Markets, Competition and Consumers Act 2024 (CMA Consumer Enforcement Rules) Regulations 2025 (SI 2025/267) before Parliament on 7 March. These Regulations govern the exercise of the CMA’s direct enforcement powers and how the CMA’s investigation and decision-making process will function in these consumer enforcement cases in relation to any one or more relevant infringements under ss. 210 and 211 of the DMCCA. 

We have more information about the scope of the DMCCA and what businesses need to do to ensure compliance with it on our dedicated DMCC webpage. Please reach out to the authors of this piece if you would like to know more about the impact of the consumer enforcement elements on your business.

Authored by Victoria Hobbs, Louise Lanzkron and Shiv Gupta.