...and the CMA has published its final (ish) guidance.

Today (6 April 2025) is the day that most of the consumer law provisions in the Digital Markets, Competition and Consumers Act come into force.  These include the CMA's extensive new enforcement powers and the recasting of the rules around unfair commercial practices, including in particular rules about drip pricing and fake reviews.

The CMA has published several pieces of guidance, which we will discuss in more detail over the coming days, but in summary, the guidance includes:

  • A short guide to how to treat consumers fairly;
  • Full updated guidance on unfair commercial practices;
  • How the CMA will use its direct consumer enforcement powers;
  • Guidance on consumer enforcement; and
  • Guidance on fake reviews (including a short guide for businesses).

Last month, Sarah Cardell of the CMA gave a speech in which she set out the CMA's approach to enforcement in the first few months of the regime, and indicated that the CMA would be carrying out a further consultation about its guidance on drip pricing.  In the meantime, it will take a light touch to enforcement. Its early enforcement action is likely to focus on the most serious breaches. These might include aggressive sales practices that prey on vulnerability; providing information to consumers that is objectively false; or contract terms that are very obviously imbalanced and unfair.  The ASA has also indicated that it will have regard to the CMA's guidance and approach.

However, while a light touch to enforcement is welcome, traders now need to comply with the new laws, there's no leeway for procrastination.  If you haven't looked at your terms of business, sales practices and customer journeys, now is a good time to start.

 

 

 

 

 

 

 

The consumer revolution is here...

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