UK Competition and Markets Authority launches its first consumer enforcement action – what businesses need to know

On 18 November, the UK Competition and Markets Authority (CMA) used its direct enforcement powers under the Digital Markets, Competition and Consumer Act 2024 (DMCC Act) for the first time since the Act came into force in April 2025 by launching direct consumer law enforcement actions against eight major UK companies for alleged infringements in their online practices. Simultaneously, it sent advisory letters to 100 UK businesses across 14 sectors alerting them to potential breaches of consumer law in their online activities. 

In tandem with the investigations and advisory letters, the CMA also issued new price transparency guidance and updated its Unfair Commercial Practices guidance. The message is clear: the CMA now expects consumer facing companies to review their existing business conduct promptly (especially regarding online activities) and bring it in line with best practices to avoid a formal investigation. 

Companies should be aware that the DMCC Act extends the CMA’s power to apply for a Director Disqualification Order for serious breaches of consumer law, as well as competition law. Please see our article on the CMA’s increased appetite to use civil enforcement tools including Competition Disqualification Orders here.  In addition, fines under the DMCC Act are now very substantial, with maximum fines on a par with Competition Act 1998 (CA98) penalties at up to 10% of global turnover.

Investigations for online practices

The investigations launched are in respect of alleged drip pricing and pressure selling infringements. This includes use of fees, misleading time-limited offers and/or the practice of automatically opting consumers in for optional charges.  

Drip pricing

The CMA has opened investigations against five businesses over alleged online practices that do not present mandatory fees to the consumer upfront. 

• StubHub and Viagogo – both secondary ticketing sites are being investigated for adding mandatory additional charges at check out. This follows last year’s CMA investigation into Ticketmaster’s dynamic pricing for Oasis concert tickets under the previous consumer law regime. See our analysis here. On 19 November, the UK government announced plans to ban resale of tickets above face value for live events.
• AA Driving School and BSM Driving School – two of UK’s largest driving schools are being investigated over whether mandatory fees were included in the total price at the beginning of the purchase process.
• Gold’s Gym – the CMA is investigating whether the one-off joining fees were introduced part way through the sign up process and not included in the advertised membership costs.

Pressure selling 

The CMA is investigating the online practices of the following homeware/appliances providers on whether their time-limited sales ended when they said they would, or whether customers are being automatically opted in to purchasing additional services.

• Wayfair – in relation to time-limited sales
• Marks Electrical – in relation to default opt-ins
• Appliances Direct – in relation to time-limited sales and default opt-ins

Advisory letters for use of additional fees and online sales tactics

The CMA sent advisory letters to 100 businesses in sectors including holidays, driving schools, homeware, rail travel, parking, cinemas, ticketing, food delivery, parcel delivery, gyms, fashion, and online vouchers.  These businesses are essentially all now on notice and can expect any subsequent infringements to result in decisive enforcement action.

What businesses need to know

• New duty of expedition- The DMCC Act introduced a duty of expedition on the CMA to act as quickly as reasonably possible. The CMA is aiming to move swiftly with these eight consumer investigations and has indicated that it will provide case updates (possibly even provisional findings) in March 2026. Whilst there are no doubt pressures to show that the regime has teeth, reaching provisional findings in just five months is likely to be challenging given experiences in CA98  investigations.  The volume of information typically requested from the CMA in these cases can stretch to terabytes of data that need to be reviewed, resulting in a potentially heavy review burden on both the companies under investigation and the CMA.
• CMA expects appropriate resourcing – The CMA’s approach to consumer law enforcement shares many commonalities with its investigations under CA98.  Companies should review their current online practices and be prepared to engage experts to navigate the CMA’s investigation process.
• Early engagement with evidence to formulate defence/ settlement strategies – Experience in CA98 investigations demonstrates the value in careful consideration of internal documents. In light of the heavy evidential burden often associated with CMA reviews, businesses should proactively gather, organise, and assess their relevant materials at an early stage, ensuring that their position is supported and that any potential compliance gaps are identified before formal enquiries intensify. This proactive stance not only streamlines the response process but can also provide companies with a stronger footing to engage constructively with the CMA, whether to clarify factual matters, develop robust defence strategies that address both legal and procedural risks or to negotiate settlements, if appropriate.
• Play the ‘settlement’ card right - It is also important not to rush too early to engage in settlement discussions without full oversight of the evidence. This approach minimises the risk of unfavourable outcomes and ensures that any decision to settle is informed, proportionate to the risks, and aligned with the company’s broader strategic objectives. Businesses particularly need to consider the significant fines of up to 10% of total global turnover for consumer law breaches, potential implications for directors under the DMCC Act.
• CMA increases civil enforcement efforts - Directors should also be aware that under the DMCC Act, the CMA has the power to seek director disqualification orders for serious breaches of consumer law as well as competition law. The Financial Times recently reported that the CMA is seeking its first Competition Director Disqualification Order against directors of Cinven (a PE fund) in respect of a competition law infringement by its portfolio company in the liothyronine excessive pricing case. This demonstrates the CMA’s strong commitment to civil enforcement and companies would be wise to seek specialist legal advice to manage these risks.
• More consumer enforcement expected - Championing consumers and improving the cost of living crisis remains high on the CMA’s 2026 – 2029 growth agenda, announced on 20 November. The CMA’s enforcement priorities continue to be focussed on sectors that make up UK consumers’ largest expenditure (except housing, though the CMA recently concluded a competition law investigation into UK’s largest housebuilders). The CMA may open more formal investigations should businesses ignore the advisory letters and do not change their online practices to be compliant with the new guidance promptly.
• Private dental market in the CMA’s sights - On 18 November, the CMA responded to the Chancellor of Exchequer’s call to open a market study into the private dental care market. If launched, it is likely to be the first market study in a non-digital market using the CMA’s enhanced competition law powers under the DMCC Act which includes a new duty of expedition and new sanctions when conducting market study/investigations for breaches. 

How can we help

We are very well (almost uniquely well) placed to assist on any engagement with the CMA in respect of actions under the DMCC.  With a strong track record in delivering excellent outcomes arising from CMA investigations, our cross-practice team includes a Tier 1 ranked advertising and marketing practice that counsel some of the largest UK and global brands on all aspects of marketing campaigns.