DMCC Act - The next chapter for CMA Consumer Law Enforcement

Co-hosted by TLT and Fingleton at TLT’s London office, the event covered takeaways and likely outcomes from the first wave of DMCCA consumer enforcement cases, areas the CMA may focus on next, and how to pre-emptively manage enforcement risk, among other topics.

Opening the session, John Fingleton provided context by reflecting on previous examples of consumer law infringement before the introduction of the DMCCA. He also commented on the increasing politicisation of consumer and competition policy especially regarding the initial eight cases the CMA has opened. John discussed the populist dimension where companies should be concerned about what is legal versus what is politically unacceptable and highlighted that this represents an interesting and rich period for consumer enforcement.

Key takeaways

1. Consumer enforcement is entering a more interventionist and politically sensitive phase. Speakers emphasised that the CMA is now operating in a heavily politicised environment, shaped by cost-of-living and affordability pressures and government expectations for rapid, visible action. This has already translated into more aggressive enforcement activity, including eight simultaneous investigations and roughly 100 advisory letters late last year. This suggests that the CMA are signalling a desire to demonstrate the value of the new DMCCA powers quickly. ‍

2. Businesses must invest now in data capability, documentation discipline, and internal design governance. Several practical themes emerged:

• Know your data: Businesses must be able to substantiate customer impact claims using clear accessible data.

• Build compliance into design: Online architecture and interface decisions should anticipate regulatory expectations from the outset.

• Document responsibly: Internal communications (e.g. Teams and Slack messages) may be scrutinised during investigations, creating significant risk if careless language (particularly contradicting the idea of being pro-consumer) is used.

• Embed consumer law compliance across the organisation. This includes having policies and business practices consistent with unfair contract terms and horizon scanning for future enforcement topics, such as environmental claims and subscriptions. ‍

3. Pricing transparency and behavioural design are at the forefront of the CMA’s priorities. The panel discussed the new pricing transparency guidance and the CMA’s use of behavioural science, including how consumers understand (not merely receive) information. Businesses must now consider whether their design choices influence customer behaviour in unintended or harmful ways, not only whether disclosures are technically compliant. This not only applies to the CMA’s current priority in pricing transparency, but the panel expects cases involving fake reviews and subscription traps before long.

4. Divergence between UK and EU consumer regimes is becoming a real compliance challenge. While many consumer protection concepts are not new, their application differs across jurisdictions. Businesses operating across the UK and EU face pressure to navigate increasingly inconsistent standards, especially on dynamic pricing, subscriptions, and use of customer data. Regulators are also hiring behavioural scientists and data experts, signalling more sophisticated scrutiny protection concepts are not new, their application differs across jurisdictions.

5. The CMA intends to use its new tools assertively, with high profile cases expected. Several speakers stressed that the CMA has waited years for DMCCA powers and is motivated to use them. A key pillar of the CMA’s approach is to leverage its formal investigations to deter infringements from others. This suggests:

• High profile, fast-moving cases that resonate publicly

• A focus on markets that are important to household budgets with broad consumer impact (e.g. travel, ticketing, food, digital platforms)

• Potentially significant fines, especially for large operators
  

The CMA has demonstrated its commitment to supporting business via guidelines, webinars and outreach. We expect that to continue. But it is also increasingly prepared to challenge outdated industry assumptions about platform responsibility, as seen in the Oasis and Wowcher cases.

Key contacts

If you would like to get in touch with either TLT or Fingleton regarding any of the topics discussed at the event, please reach out to the contacts below.

‍John Fingleton, CBE

Chair | Fingleton

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Timothy Geer

Director | Fingleton

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