7th April 2025
“From 6 April 2025, the Digital Markets, Competition, and Consumer Act will significantly impact how businesses approach consumer protection. The introduction of a dual enforcement regime means both the courts and the CMA will have the power to take action. It is crucial that you act now to ensure compliance by (amongst other things) disclosing mandatory charges and ensuring the accuracy of your consumer reviews.”
Since coming into force at the beginning of 2025, the Digital Markets Competition and Consumer Act (DMCCA) has had a profound impact on the competition law regime in the UK. Equally significant changes to the consumer protection regime have now come into force from 6 April 2025. In this article, we highlight a number of key changes relating to obligations on businesses regarding “drip pricing” and “fake reviews”, as well as the introduction of a dual enforcement regime.
The DMCCA replaces the previous consumer protection regime governed by the Consumer Protection from Unfair Trading Regulations 2008 (the Regulations). Under the old regime, a practice was deemed “unfair” only if it would have caused the average consumer to take a different transactional decision about the related product. Separately to this, the Regulations outlined 31 specific “banned practices” which were considered unfair in all circumstances (such as bait advertising and pyramid schemes).
While much of the old regime remains intact under the DMCCA, from 6 April there will be some notable changes, particularly in relation to “drip pricing” and “fake reviews” – two areas that are now top priorities for enforcement by the CMA.”
Drip pricing refers to the practice whereby a consumer is given an initial price for a product, only for additional, mandatory charges to be revealed as they proceed with the transaction. These additional costs may include delivery fees or service charges to the extent that the consumer will necessarily incur such charges through acquiring the product in question.
Under the Regulations, drip pricing was only unfair to the extent that it caused or was likely to cause the average consumer to take a different transactional decision about the product in question. From 6 April, this requirement has been removed, making drip pricing an offence in and of itself. To comply with the DMCCA, businesses are now required to include all mandatory charges in the headline price of the product.
The DMCCA introduces a further banned practice with the inclusion of fake reviews. The scope of the practice is broad and encompasses a wide range of activities, from publication to the offering of related services. Importantly, businesses will now have an active duty, not only to prevent the publication of fake reviews but also to take proactive steps to remove them from their website.
Additionally, from 6 April, a dual enforcement regime will be introduced, granting both the courts and the CMA jurisdiction over enforcement. Consumer protection law has previously been difficult to enforce, with the detriment to consumers increasing as the digital economy grows. The new powers will enable the CMA to investigate, determine and take enforcement action to address certain consumer protection infringements including those set out above. This grants the CMA the authority to enforce penalties outside of the courts and ultimately the power to impose fines of up to 10% of a firm’s global turnover.
Many businesses’ internal consumer protection mechanisms and processes will need to be strengthened significantly. Coupled with the introduction of a dual enforcement regime and positive obligations in terms of reviewing online information and consumer experience, businesses will face increased responsibility to comply with the practices set out in the DMCCA.
If your business has an online presence, you will need to ensure that all mandatory charges are clearly disclosed and that the reviews accompanying your products are accurate and genuine. You should conduct risk assessments into which areas of your activities may be most at risk from enforcement measures, and where business resilience may need to be tested.
It appears consumer protection is firmly within the CMA’s sights, with a commitment to publishing further guidance as well as an approach document regarding the upcoming changes made recently. Further changes can be expected in April 2026, when measures protecting against subscription traps will come into effect.