CMA exercises new powers under the Digital Markets, Competition and Consumers Act

Since 6 April 2025, the Digital Markets, Competition and Consumers Act (the DMCC Act) has introduced wide-ranging reforms to strengthen consumer protection and promote fair competition in digital markets. The Act gives the Competition and Markets Authority (the CMA) enhanced enforcement powers, including the ability to impose substantial financial penalties and take direct action without court involvement. It also establishes a regulatory framework for firms with Strategic Market Status, imposing tailored conduct requirements to curb anti-competitive practices. In addition, the legislation addresses key consumer issues such as subscription traps, misleading online practices, fake reviews and drip pricing, ensuring greater transparency and fairness in transactions. Updates to merger control thresholds and expanded investigatory powers further reinforce the CMA’s role in safeguarding competitive markets and consumer rights.

On 18 November 2025, the CMA announced its first formal consumer protection investigations under these new powers, a significant shift in the UK’s enforcement landscape. The CMA opened eight enforcement cases and issued 100 advisory letters to businesses suspected of breaching new price transparency rules. These letters put companies “on notice” to review their practices and ensure compliance with CMA guidance on unfair commercial practices.

The eight companies under investigation are StubHub, Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical. The CMA is examining practices including:

• Drip pricing - adding mandatory charges later in the checkout process.
• Automatic opt-ins - pre-selecting paid services without clear consent.
• Time-limited sales - assessing whether advertised deadlines are genuine and looking into misleading countdown clocks.

These investigations follow a review of more than 400 businesses across multiple sectors, including travel, homeware, fitness and entertainment, to assess compliance with price transparency rules. The CMA has stressed that no conclusions have yet been reached about whether the law has been broken.

Alongside these enforcement actions, the CMA published its final transparency guidance after a summer consultation. While the guidance offers some clarifications, it remains largely unchanged from the draft guidance despite widespread industry concerns. The next updates on these investigations are expected in March 2026.

The CMA’s recent actions underline the importance of transparency and compliance under the DMCC Act. Businesses should urgently review pricing practices, subscription models and sales tactics to ensure they meet CMA guidance. With the CMA empowered to impose fines of up to 10% of global turnover and order compensation without court proceedings, proactive compliance is essential to avoid costly enforcement. Further updates are expected in early 2026, so staying ahead of these requirements will be critical for managing risk and maintaining consumer trust.

For more information please contact Micaela Diver, Partner, Kathy Regan, Senior Associate, Aimee Fullen, Solicitor or your usual ALG Team contact.

Date published: 27 November 2025