The Competition and Markets Authority's new consumer enforcement powers are coming into effect on 6 April 2025. These powers give the CMA the ability to initiate and conduct its own investigations, decide whether a company has breached consumer laws (without involving the courts), and unilaterally issue a financial penalty of up to 10% of annual global turnover.
Ahead of this, the CMA has published detailed guidance which covers both the CMA's general approach to the exercise of its new direct consumer enforcement powers and also its statement of policy in relation to the exercise of its powers to impose monetary penalties.
In particular, the guidance sets out:
- The enforcement process the CMA will follow.
- The use and acceptance of undertakings and settlement.
- How penalties will be calculated; both for infringements of consumer law and also in respect of the CMA's "administrative enforcement", including for breaches of directions and undertakings and for non-compliance with information notices.
- How the CMA will make decisions and how it will handle complaints.
The guidance supplements the CMA's existing guidance "Consumer Protection Enforcement Guidance: CMA 58" on how it uses its consumer powers, including its approach to compliance and enforcement of consumer law.
So, what do YOU need to do?
These documents will be of significance to any trader facing investigation, and potentially hefty fines, under the CMA's new powers. They contain a road map of what to expect in the enforcement process and also set out information on CMA's considerations when calculating fines, including aggravating and mitigating factors.
See our Get DMCC Ready Hub for further information, guidance and insights on the changes to consumer law and its enforcement implemented by the Digital, Markets, Competition and Consumers Act 2024.
