The Competition and Markets Authority (“CMA”) has published new guidance giving businesses an indication on the approach it intends to take to consumer protection now that the new consumer protection regime under the Digital Markets, Competition and Consumers Act 2024 (“DMCC Act”) has come into force.

In addition to reaffirming the CMA’s commitment generally to promoting trust and confidence both among consumers and businesses, the Guidance sets out a number of areas that will receive particular attention in the year ahead:

1. Aggressive sales practices that prey on consumers in vulnerable positions;
2. Providing information to consumers that is objectively false;
3. Banned practices relating to fake reviews;
4. Fees that are hidden until late in the purchase process; and
5. Contract terms that are “clearly imbalanced and unfair, including those that impose unfair exit charges on consumers”.

In a warning that indicates that it will not be slow to use its new powers, the CMA states that “stakeholders can expect us to focus our action in ensuring harmful conduct is stopped quickly and that consumers are compensated”.

The Guidance also reiterates the CMA’s efforts to implement the so-called ‘4P framework’ (pace, predictability, proportionality, and process) into its consumer protection work, committing itself to conduct investigations as quickly and efficiently as possible, engaging with businesses along the way, and using its enforcement powers in a fair and proportionate manner. It will also publish new guidance where necessary to give businesses even greater predictability and transparency about the CMA’s working.

Finally, echoing commitments made elsewhere, the Guidance describes how the CMA will work with international partners and consumer organisations to share intelligence, promote good practice, and avoid duplicating the activities of overseas enforcers.

To read the Guidance in full, click here.

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