Digital Markets, Competition and Consumers Act 2024 explained: The CMA's new enforcement toolkit

The Digital Markets, Competition and Consumers Act 2024 (DMCC) is a significant piece of legislation that reshapes the landscape of consumer protection and competition law in the UK. For businesses operating in the retail and tech sectors in the UK, it's crucial to understand how the DMCC impacts your operations and compliance obligations. This article will guide you through the consumer law enforcement regime under the DMCC.

What is the DMCC?

The DMCC is a comprehensive piece of legislation aimed at enhancing consumer protection and promoting fair competition in the UK. The DMCC brings in a number of changes to consumer regulation, including changes to the unfair commercial practices regime, to fake reviews and drip pricing, and to subscription contracts. Some of these changes are already in force but some aspects of the DMCC require secondary legislation to clarify how the new regime will work in practice.

The consumer law enforcement regime under the DMCC and the unfair commercial practices regime came into force on 6 April 2025. The DMCC provides the Competition and Markets Authority (CMA) with a refreshed mandate for consumer protection. This includes a range of new powers to tackle unfair practices and ensure that businesses operate within the law.

In the CMA's recent enforcement guidance, it has emphasised how the CMA's enforcement work fosters a level playing field for fair-dealing businesses. And, in the CMA's Annual Plan 2025 to 2026, the CMA notes that it will use its "new, direct consumer protection powers under the DMCCA to help grow the economy through promoting consumer trust and confidence, while deterring poor corporate practices". Trading Standards and other sector regulators, such as Ofgem, Ofcom and the Advertising Standards Authority, continue to play a part and the CMA will collaborate closely with them.

Key changes Introduced by the DMCC

The DMCC introduces several significant changes that affect how businesses operate. Here are some of the key changes to the consumer law enforcement regime:

• New direct enforcement powers for the CMA: The CMA now has direct enforcement powers, allowing it to investigate and take action against breaches of certain consumer protection laws without needing to go through the courts. This includes the power to issue fines. This means that the CMA can act more swiftly and effectively to address issues.
• Civil and criminal enforcement: The DMCC provides for both civil and criminal enforcement of consumer protection laws. The CMA can choose the most appropriate route based on the severity of the breach and the desired outcome. For example, criminal prosecution may be pursued for serious breaches that require a strong deterrent message.
• Online interface notices and orders: The CMA and the courts can issue an online interface notice/order which requires the trader or the ISP to remove or modify online content which is infringing the DMCC. An online interface order can even include a requirement for the trader to delete a domain name.
• Enhanced Consumer Measures (ECMs): The DMCC allows for the imposition of ECMs, which can include compensation for consumers, compliance measures to prevent future breaches, and measures to improve consumer choice. These measures are designed to provide redress to consumers and ensure that businesses take steps to comply with the law.

Consequences of non-compliance

Failing to comply with the DMCC can have serious consequences for your business. Here are some potential outcomes of non-compliance:

• Monetary penalties: The CMA and the courts can impose significant monetary penalties for breaches of consumer protection laws. These penalties can be up to £300,000 or 10% of the business' turnover, whichever is higher.
• Criminal prosecution: In cases of serious breaches, the CMA may pursue criminal prosecution against directors and other officers involved in the infringement. This can result in fines, imprisonment, or both, depending on the severity of the offence.
• Director disqualification orders: Where an individual has been convicted of an indictable offence.
• Reputational damage: Non-compliance can also lead to reputational damage, which can have long-term effects on your business. Consumers are increasingly aware of their rights and are likely to avoid businesses that do not comply with the law.

What do we know about the CMA's enforcement priorities?

On 15 May the UK Government issued a new growth-focused Strategic Steer for the CMA. The Steer sets the CMA's priorities, with a focus on prioritising growth and investment while ensuring free and fair competition and protecting the rights of consumers. In the Steer, the CMA is advised to use its tools, including its enforcement powers under the DMCC, to grow the economy through promoting consumer confidence and deterring poor corporate practices. Sarah Cardell, the CMA's Chief Executive, has said that the Steer reinforces the approach set out in the CMA's Annual Plan 2025/26.

We also know from the CMA press release and guidance that the CMA is going to focus on the "more egregious breaches" during the first 12 months of enforcement. Examples given by the CMA in the press release include:

• Aggressive sales practices that prey on consumers in vulnerable positions
• Fees that are hidden until late in the buying process
• Information being given to consumers that is objectively false
• Unfair and unbalanced contract terms; and
• Behaviour where the CMA has already put down a clear marker through its previous enforcement work, such as on drip pricing and fake reviews.

In the CMA's enforcement guidance, the CMA says that it will be looking for "high impact results". Such as a consumer enforcement intervention that leads to a change in market behaviour.

The CMA guidance on its approach notes that it will engage with businesses which want to comply but may be uncertain what is required under the new regime. The amount of any penalty will also reflect steps a business may have taken to correct any infringing conduct.

What does your business need to do next?

Under the previous regime, fines for unfair commercial practices were relatively rare and low. By way of example, Tesco was fined £300,000 in 2013 after it admitted misleading the public in relation to a 'half price' offer on strawberries.

Under the new regime, we see new powers for the CMA, new powers for the courts and new, significant, monetary penalties. It is clear from the CMA guidance that enforcement is more likely and will be severe. This represents a big exposure for traders and an elevated risk profile. The CMA acknowledges in its guidance that we are now in a higher risk environment for traders.

Businesses need to know that the DMCC introduces changes to the unfair commercial practices regime. By way of example, it specifically bans fake reviews and drip pricing. Retailers and other businesses must familiarise themselves with the DMCC as well as the CMA's guidance on the new consumer protection regime. They must factor the requirements of the DMCC into their compliance plans as well as their processes and legal terms. Additional training may be needed within their organisation, which is likely to involve the legal, compliance, marketing and sales functions, to make sure the DMCC requirements are understood and rolled out. If there are aspects of the DMCC or the CMA guidance which are unclear, now is the time to raise this with the CMA and industry groups.

Where can you read more about the DMCC and the approach the CMA will take to enforcement?

A good place to start is with the full text of the DMCC. The Explanatory Notes to the DMCC set out the policy background to the DMCC as well as explanations of what specific sections of the DMCC mean in practice.

The CMA's Annual Plan for 2025 to 2026, published in January 2025, outlines the CMA's approach to enforcement under the DMCC and the new Strategic Steer shows UK Government's priorities for the CMA.

The CMA published two pieces of guidance, in April 2025, on its enforcement powers under the DMCC. The guidance covers the CMA's role, functions and powers in relation to consumer protection, and the CMA's approach to compliance and enforcement of consumer law during the first 12 months under the DMCC.

Do you want to know more about the DMCC and how it might impact on your business?

Simply reach out to Ashley Borthwick, Andrij Jurkiw, or Sarah Daun.