Game-changing consumer protection provisions under the DMCC Act come into force – are you prepared?

Introduction

As of 6 April 2025, landmark new consumer protection provisions under the Digital Markets, Competition and Consumers Act 2024 (the “DMCC”) have come into force, including those giving enhanced enforcement powers to the Competition and Markets Authority (the “CMA”) and provisions which protect consumers from unfair trading practices, which (mostly) replace the previous Consumer Protection from Unfair Trading Regulations 2008 (“CPUT”).

Accompanying Guidance

With the new consumer protection provisions coming into effect, the CMA has now also published final guidance (having consulted on drafts produced last year). This guidance will be the topic of further articles, but in summary includes:

• ‘The CMA’s approach to consumer protection’, which sets out the CMA’s ambitions for consumer protection and how it will approach its new powers in the 12 months following commencement, including likely areas of focus;
• Guidance on the new unfair commercial practices regime under the DMCC;
• Guidance on fake reviews (where the DMCC introduces new prohibitions);
• Guidance on enforcement under the new consumer protection regime; and
• Guidance on what businesses need to know about unfair commercial practices.

The CMA has recently found itself in the Government’s crosshairs, having been publicly challenged to use its powers to unlock opportunities for growth and investment in the UK and to ensure its processes do not run counter to these aims.  Seen in this context, the joint statement on consumer protection made by the Department for Business & Trade and the CMA on 7 April represents a strong endorsement of the CMA’s new powers, signalling that the Government views the new regime as complementary to its growth agenda.  For its part, the CMA confirms in its 2025-6 Annual Plan that it will use the powers introduced by the DMCC to help grow the economy by promoting consumer trust and confidence, while deterring poor corporate practices.

What you need to be aware of

Although much of the DMCC’s consumer protection provisions are similar to those under CPUT, the DMCC has some key differences. Whilst some of these are clearly stated in the legislation, such as a number of new banned practices  (including those relating to fake and misleading reviews) and the new rules specifically relating to subscription contracts (although these are not due to come into force until 2026), others are less so, such as where the definition of certain offences have been updated slightly, widening their scope.

Under the DMCC, the CMA now has the power to directly enforce breaches of consumer protection laws (including in relation to unfair commercial practices) and to impose substantial fines of up to 10% of a non-compliant business’ annual global turnover. The CMA is also able to impose enhanced consumer measures on businesses in breach of these obligations. For more information on the CMA’s enforcement powers and process, see here. Given the severity of these potential consequences for businesses, it is important that businesses familiarise themselves with the new obligations and departures from the previous regulatory regime. Reviewing the guidance is an important first step for businesses to understand what has changed before assessing whether its business practices and processes are compliant.

If you are impacted by the DMCC’s consumer protection provisions or have any wider queries about the DMCC or other consumer protection law issues more generally, please get in touch with a member of our team.