The new Digital Markets, Competition and Consumers Act 2024 (DMCC Act) has overhauled consumer legislation and provides extensive new powers to the competition regulator, the Competition and Markets Authority (the CMA).
In the first seven months of the new regime, the CMA prioritised educating businesses rather than enforcing the rules. It issued advisory letters to over 50 companies about potential issues with fake reviews, encouraging them to check their policies. By November 2025, after reviewing the pricing practices of more than 400 businesses, the CMA launched eight investigations into suspected drip pricing and pressure selling and sent a further 100 advisory letters. While the outcomes are still pending, the CMA’s continued use of advisory letters shows a proportionate approach aligned with government guidance.
On 13 February 2026 the CMA exercised it DMCC Act fining powers for the first time. It issued a fine to Euro Car Parks in the amount of £473,000 for failure to respond to an information notice.
Is your business ready for the new phase of consumer protection enforcement?
The ‘absolutely not’ list under the DMCC
- Fake or misleading consumer reviews: The DMCC Act bans submitting, commissioning or publishing fake or misleading reviews, including hiding the fact that a review has been incentivised. Traders are also prohibited from removing reviews or review information in a way that misleads consumers, such as deleting negative reviews so only positive ones remain.
- Pressure selling: Traders must not pressure consumers by falsely claiming that a product is only available for a limited time.
- Paid promotions presented as independent editorial content: Businesses cannot use editorial-style content in the media to promote a product when payment has been made for the promotion unless this is clearly disclosed through wording, images or sounds identifiable to consumers.
- False claims: For example, within the cosmetic industry it is prohibited to claim that a product can modify a person’s appearance if this is not true.
- Drip pricing: Traders cannot advertise a headline price that excludes mandatory charges such as VAT or booking fees. These charges must be displayed with the same prominence as the headline price, with a clear explanation of how they are calculated. Drip pricing refers to the misleading practice of advertising a low upfront price and adding mandatory fees at checkout, increasing the final cost to the consumer.
The risk of getting it wrong
The CMA has significant powers to investigate and issue:
- A false information enforcement notice imposing a monetary penalty. The penalty must be a fixed amount not exceeding £30,000 or, if higher, 1% of the total value of turnover.
- A breach of directions enforcement notice imposing a monetary penalty. The penalty must be a fixed amount not exceeding £150,000 or, if higher, 5% of the total value of turnover
- An infringement notice which could include a monetary penalty of a fixed amount not exceeding £300,000 or, if higher, 10% of the total value of turnover.
Key questions for traders
- Are your current practices compliant with the DMCC Act? For example, do you clearly disclose all paid promotions, do you avoid making claims that a product is only available for a limited time, or avoid misleading or fake reviews?
- Are staff and paid influencers aware of their obligations under the DMCC Act? Do they understand the risks of non-compliance, and do they need training to ensure their behaviour and practices remain compliant?
- Do you have an action plan for responding to a CMA investigation? The DMCC Act significantly strengthens the CMAs investigatory powers, and fines can be imposed for non-compliance, including failure to respond properly to information requests.
- Do you actively monitor CMA updates and guidance on the DMCC Act? And do you have processes in place to ensure the business stays up to date with any changes?
Conclusion
Companies should start stress testing their current practices to make sure they meet the new rules and stay off the CMA’s radar. This includes tightening policies, training teams and carrying out risk assessments to identify any issues early. And with more rules likely to come through secondary legislation, businesses should keep a close eye on updates, so nothing catches them out.
ALG’s Consumer and Advertising Team has significant experience in advising consumer-facing businesses on regulatory requests for information, investigations, consumer complaints and litigation. If you would like any further information please contact Keith Dunn, Eileen McKendry-Gray, Kathy Regan or Aimee Fullen.
Date published: 27 March 2026
