April 2025 "go live" date for new consumer protection enforcement regime: start preparing now
The Government has indicated that it intends to bring new consumer enforcement powers contained in the Digital Markets, Competition and Consumers Act 2024 (DMCCA) into force in April 2025. Revised legislation on unfair trading and new rules on fake reviews will come into force at the same time. However, new rules on subscription contracts will not be introduced until Spring 2026 "at the earliest."
The key point for B2C businesses (and their investors) is that from April 2025, the UK Competition and Markets Authority (CMA) will acquire some of the strongest consumer protection enforcement powers in the world, including the ability to impose fines of up to 10% of global turnover for the most serious breaches. Ahead of that deadline, B2C businesses should ask themselves the following questions:
- Are we sitting on any "ticking time bombs" in terms of our existing practices and processes involving consumers?
- Are relevant staff – particularly those in sales roles – aware of the risks that infringing consumer law poses to the business? Do staff need a refresher on what types of behaviour, or practices are likely to be problematic?
- Do we have a plan for how we would respond if investigated by the CMA for breaches of consumer law? The DMCCA also significantly strengthens the CMA's investigatory powers and fines can be imposed for non-compliance with e.g. information requests.
For more information, see: The UK's new consumer protection legislation: 3 key takeaways. We are happy to provide training to assist clients in preparing for the new regime.
Unfairly dynamic? CMA investigates Oasis ticket prices
The CMA has opened an investigation into the sale of Oasis concert tickets by Ticketmaster. At this early stage, its key concerns appear to be as follows:
- Whether consumers were given sufficient upfront information about how the tickets would be sold, in particular, about the possibility of them being subject to so-called 'dynamic pricing' (where prices can increase in response to high demand); and
- Whether the purchasing process had the effect of putting consumers under undue pressure to make buying decisions within a very short timeframe, for fear of losing out to other potential purchasers.
What's the wider significance?
The pressure sales aspect of the investigation provides a further demonstration of the CMA's keen interest in so-called "online choice architecture" and "dark patterns" (where websites are designed to manipulate consumers into behaving in ways which may not be in their best interests). See, for example, its investigations into the use of misleading countdown timers and other practices by online deals site Wowcher and online mattress seller Simba.
Meanwhile, the dynamic pricing aspect will be of interest to other businesses which either already use that model or are thinking of doing so. Our view is that, as a general rule, dynamic pricing should not be regarded as inconsistent with consumer protection law – but much depends on how it is implemented and, in particular, how it is explained to consumers. More generally, the Oasis investigation acts as a reminder to all B2C businesses to take particular care to avoid pricing being presented in a misleading way (including by omitting key information).
For more background on countdown timers and similar online sales tactics, see our coverage of the CMA's investigation into online mattress seller Emma Sleep (which it is now taking to court over its practices).
CMA continues to take firms to task over misleading green claims
Following on from the publication of its green claims guidance, the CMA is continuing to take action against B2C businesses over promotional material containing potentially misleading environmental claims. Recent sectors targeted include:
- Heating and insulation: for example, in August 2024, following a CMA investigation, boiler manufacturer Worcester Bosch agreed to amend its marketing practices relating to its description of its boilers as "hydrogen blend ready". Meanwhile in July, the CMA published guidance to the heating and insulation sector on misleading green claims.
- Fashion: in September 2024, the CMA published guidance to fashion brands on how to ensure that marketing materials featuring environmental claims are not misleading. It also stated that it had written to 17 well known fashion brands asking them to review their practices; if they fail to comply, they can expect to be on the receiving end of enforcement action (as was the case with Asda, Boohoo and ASOS).
More generally, these actions demonstrate the high priority that the CMA currently attaches to this area of enforcement. It is also worth noting that the EU has been active in this area – see our briefing on its proposed green claims directive.
B2C contracts and clickwrap terms: the £1 million lottery case and what you can learn from it
A recent dispute over whether a consumer had won £1 million in an online game has some important lessons for B2C businesses and their online terms and conditions, particularly when errors or software glitches occur.
In this video, we provide a visual guide to the case, which involved the former National Lottery operator Camelot. Find out what went wrong and how the drafting and presentation of Camelot's online terms and conditions were central to the outcome of this dispute.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
