Are you ready for (some of) the UK consumer law changes on the horizon? Various parts of the Digital Markets, Competition and Consumers Act 2024 (DMCC) are due to come into force on 6 April 2025, as recently confirmed by The Digital Markets, Competition and Consumers Act 2024 (Commencement No. 2) Regulations 2025. Here's an overview on what to expect (plus a status update on the various guidance docs floating around).

CMA powers = supercharged

The Competition and Markets Authority's (CMA) new consumer law enforcement powers will go live on 6 April, meaning that it no longer needs to refer a matter to the courts to determine if consumer laws were breached (although that option will remain available).

The power to make a determination of non-compliance will also rest in the hands of the CMA, along with the ability to levy hefty fines without judicial involvement.  This so-called direct enforcement regime has a very GDPR feel to it, with varying percentages of global annual turnover being the reference point for calculation of fines.

The full extent of the CMA's new powers can be found in Part 3 of the DMCC and its recently finalised direct consumer enforcement guidance, which sets out how the CMA plans to use those powers to enforce the new DMCC consumer rules. See in particular:

• Annex A, which summarises the specific DMCC rules the CMA has the power to directly enforce (as well as other consumer legislation such as the Consumer Rights Act 2015).
• Annex D, which summarises how the CMA intends to calculate turnover for the purpose of calculating fines.
• Annex E, which provides examples of DMCC breaches and how the CMA would enforce against them by reference to a culpability rating.

In any event, the CMA has said that early enforcement action (i.e. from 6 April) is likely to focus on more egregious breaches, including very obviously unfair consumer contract terms and aggressive sales practices that prey on vulnerability. The takeaway here is that we're unlikely to see heavy-handed enforcement activity from the go-live date, which should provide some comfort to those struggling with the finer details of the DMCC's new requirements.

CPUT goes c(a)put

As part of the DMCC's introduction to the world, the much-loved/loathed Consumer Protection from Unfair Trading Regulations 2008 (CPUT) will be revoked on 6 April and replaced by the protection from unfair trading provisions set out in Chapter 1 of Part 4 (although CPUT will remain applicable to conduct pre-6 April). These provisions largely restate the CPUT rules, subject to amendments including the banning of commercial practices relating to fake reviews and drip pricing - see more on this below.

The fact that many of the existing rules are simply being restated should not be taken for granted, however, as it will soon be significantly easier for the CMA to take action against businesses engaging in unfair commercial practices. We expect this to result in an increase in low-level enforcement activity which, pre-DMCC, might have been lower priority in the eyes of the CMA.

CPUT guidance

As is often the case with consumer law, the devil is in the detail, and a significant amount of guidance will sit alongside the DMCC's statutory provisions. After publishing draft guidance on unfair commercial practices for consultation in December 2024 (intended to complement the DMCC's new unfair trading provisions and replace the rather outdated 2008 guidance on CPUT from the Office of Fair Trading), the CMA has promised that the final draft will be “considerably" streamlined to make it as clear and accessible as possible. We can expect to see a final version of this reconfigured guidance published in early April (yes, literally days before the rules kick in!). 

Drip pricing

Whilst the above-mentioned drip pricing ban comes into effect on 6 April alongside the other unfair trading rules, the CMA has acknowledged that the draft CPUT guidance it published in December 2024 (see above) has “created uncertainty” as to which practices are considered drip pricing. On that basis, it has promised that new guidance (yes, more guidance) will be published and consulted on over the summer and then finalised in autumn. Until then it “will only take enforcement action against drip pricing which clearly breaches the rules" as set out in the finalised CPUT guidance we're expecting in early April. This should give organisations some respite as they work to reimagine purchase flows to comply with the new requirements, as it looks like only the most obvious and egregious instances of drip pricing will be enforced against.

Fake reviews

…and here's another caveat to the 6 April deadline. Again, whilst the much-discussed rules on fake reviews and their designation as an unfair commercial practice technically apply from next month, the CMA recently announced that it will be taking a phased approach to the ban, recognising that the new rules may require changes to systems and compliance programmes. As such, for the first three months following the enforcement date, the CMA will “focus on supporting businesses with their compliance efforts rather than enforcement”. 

Again, a sigh of relief for marketplaces and others incorporating ratings systems into their operations, although frustrating that another compliance project will be necessary in late 2025 when the additional drip pricing rules are finalised.

What's next?

The above covers off the most pressing changes we're expecting to see on (and around) 6 April 2025, but it doesn't stop there - make sure you also keep an eye on the following:

• ASA consultation: Many of the UK rules on broadcast and non-broadcast advertising are based on consumer laws. As we're saying farewell to CPUT on 6 April, the Advertising Standards Authority has also been consulting on proposed changes to the CAP and BCAP Codes to reflect the updates brought about by the DMCC, particularly in relation to drip pricing and fake reviews. We're expecting to see the updated rules in early April.
• Drip pricing guidance: As mentioned above, expect to see draft guidance on the DMCC's drip pricing rules in autumn 2025.
• Subscription rules: Later this year, look out for draft guidance on the DMCC's new subscription contracts regime (set out in Chapter 2 of Part 4 and due to come into force in Spring 2026) which restates and extends the existing Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 with more onerous requirements for subscription services, including enhanced cooling off rights and notification obligations. No word yet on exactly when these new rules will apply, or when the guidance is due.