TRW & Co · Competition and consumer law
DMCC Act: CMA Direct Consumer Enforcement and Fines
DMCC Act consumer enforcement lets the CMA decide consumer law breaches itself and fine businesses up to 10% of global turnover. In force since 6 April 2025, the regime has already produced fines against StubHub, Wayfair, Appliances Direct and others for drip pricing, false urgency and pre-ticked extras. Any business selling to UK consumers should review its pricing and sales journeys now.
Key pointEvery fining decision announced so far has been settled, with the business admitting the breach in exchange for a 40% discount and giving up its right to appeal, so the first weeks of an investigation largely determine the outcome.
At a glance
In force since April 2025
The CMA's direct consumer enforcement powers under the Digital Markets, Competition and Consumers Act 2024 came into force on 6 April 2025 and are not retrospective.
Fines up to 10%
Substantive breaches can attract fines of up to 10% of global turnover or £300,000, whichever is higher, plus orders to compensate affected consumers.
Procedural penalties too
Failing to answer an information notice can cost up to 1% of global turnover; Euro Car Parks received a £473,000 fixed penalty, now under appeal.
Early enforcement record
The CMA reports over £12 million in fines and nearly £2.4 million in refunds in 18 months, mainly for drip pricing, false urgency and pre-ticked extras.
Subscriptions come next
The DMCC Act subscription contracts regime is not yet in force as of October 2026 and is expected to begin in early 2027.
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The short answer: what DMCC Act consumer enforcement means
DMCC Act consumer enforcement refers to the direct enforcement powers the Competition and Markets Authority (CMA) gained under the Digital Markets, Competition and Consumers Act 2024. Since 6 April 2025, the CMA can investigate, decide for itself that consumer law has been broken, and impose fines of up to 10% of global turnover or £300,000, whichever is higher, without going to court first.
As of October 2026, the regime is producing results. The CMA has fined businesses including StubHub, Wayfair, Appliances Direct, Marks Electrical and Gold's Gym, and says it has imposed more than £12 million in fines and secured nearly £2.4 million in refunds in the regime's first 18 months. Drip pricing, false urgency, pre-ticked extras and fake reviews are the early priorities.
Who is affected? Any business selling to UK consumers, including overseas traders targeting UK customers. What should you do now? Audit your pricing displays, sales journeys, review practices and response procedures for CMA information requests.
What changed in April 2025
Before the Digital Markets, Competition and Consumers Act 2024, the CMA had to take consumer cases to court to obtain enforcement orders, and it had no power to fine for breaches of the substantive rules. Cases were slow, and most ended in undertakings.
The DMCC Act changed three things at once:
- Direct enforcement. The CMA can now investigate and determine infringements itself, issue final infringement notices, and impose penalties and directions.
- Restated rules. Part 4, Chapter 1 of the Act replaced the Consumer Protection from Unfair Trading Regulations 2008 with updated unfair commercial practices provisions, plus a longer list of practices that are always unfair.
- Redress. The CMA can require businesses to compensate affected consumers, and secure enhanced consumer measures such as refunds.
The CMA marked the start of the regime with an "Approach to Consumer Protection" statement and committed to focusing early action on the more egregious practices, such as aggressive sales tactics, hidden fees and unfair contract terms. It has published direct consumer enforcement guidance (CMA200) and unfair commercial practices guidance (CMA207).
The CMA's powers and penalties
The penalty framework is the core of DMCC Act consumer enforcement. According to the CMA's own published notes, the maximum penalties are as follows.
| Breach | Maximum penalty | Notes |
|---|---|---|
| Infringing consumer protection law | 10% of global turnover, or £300,000 if higher | Plus directions and redress for consumers |
| Breaching undertakings given to the CMA | 5% of global turnover | Additional daily penalties for continued non-compliance |
| Failing to comply with an information notice, concealing evidence or giving false information | 1% of global turnover | Additional daily penalties may apply |
The powers are not retrospective. The CMA has said that because conduct before the regime began cannot be fined, penalties in the first year were likely to be lower than in later years. Businesses should assume that fines will rise as the regime matures.
Settlement is encouraged. In each of the CMA's announced fining decisions so far, the business admitted the breach and settled early, receiving a 40% reduction. Settling means agreeing not to appeal or challenge the decision in court.
How penalties are set
The CMA's guidance explains that penalties reflect the seriousness of the infringement, its duration, the harm to consumers and the size of the business, with the aim of deterring future breaches. Adjustments can follow for aggravating factors, such as senior management involvement or continuing after warnings, and for mitigating factors, such as prompt remediation, cooperation and voluntary redress. The penalty must stay within the statutory maximum.
For businesses, the practical lesson from DMCC Act consumer enforcement so far is that remediation and redress are not optional extras. The CMA has paired each fine with refund obligations where consumers paid more than they should have, and it has highlighted how quickly businesses stopped the conduct.
Other enforcers remain active
The CMA is not the only enforcer. Trading Standards services and other designated regulators continue to enforce consumer law, generally through the courts, and sector regulators such as Ofcom and the FCA have their own powers. The CMA's direct powers sit on top of those routes rather than replacing them, so a business can face scrutiny from more than one body.
Banned practices and the rules being enforced
The CMA enforces a broad range of consumer law, but its first DMCC Act consumer enforcement cases focus on a handful of practices.
Drip pricing and the total price
Under section 230 of the DMCC Act, an invitation to purchase must include material information, including the total price. The CMA treats mandatory fees introduced later in the buying process, such as booking, service or delivery fees that cannot be avoided, as drip pricing. Optional extras can be shown separately, but mandatory charges must be in the headline price from the outset.
False urgency and fake time-limited offers
Countdown timers and "today only" claims are unlawful where the offer does not in fact end when stated. The Wayfair and Appliances Direct decisions both involved offers that continued, or recurred, after the stated deadline.
Pre-ticked boxes for paid extras
Under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, a trader needs the consumer's express consent before charging for optional extras. Pre-ticked boxes and automatic opt-ins are not allowed.
Fake and misleading reviews
Schedule 20 to the Act lists practices that are unfair in all circumstances. It now includes submitting or commissioning fake reviews, and publishing consumer reviews in a misleading way. Businesses that publish reviews must take reasonable and proportionate steps to prevent fake reviews from appearing. Our article on fake reviews and drip pricing covers the detail.
Enforcement so far: cases and priorities
The CMA's first DMCC Act consumer enforcement cases followed a review of more than 400 businesses across 19 sectors. In November 2025 it opened investigations into StubHub, viagogo, AA Driving School, BSM Driving School, Gold's Gym, Wayfair, Appliances Direct and Marks Electrical, and wrote to 100 businesses across 14 sectors about fees and sales tactics.
Outcomes announced so far include:
- StubHub (June 2026). Fined close to £900,000 for adding mandatory fees at the final checkout stage, and ordered to refund more than 50,000 customers over £590,000 in total.
- Marks Electrical. Fined for charging customers for additional services without express agreement, and required to refund customers.
- Wayfair (October 2026). Fined £4.8 million for false time-limited "Daily Deals" and "Flash Deals".
- Appliances Direct (October 2026). Fined £1.2 million and ordered to refund around £432,000 for pre-ticked extras and recurring countdown discounts.
- Gold's Gym (October 2026). Fined £45,000 and ordered to refund customers for failing to include a mandatory joining fee in the total price.
Procedural breaches are also punished. In December 2025, the CMA imposed a fixed penalty of £473,000 on Euro Car Parks for failing, without reasonable excuse, to comply with an information notice. The company has appealed to the High Court, and the CMA has stressed that it has not opened an investigation into whether Euro Car Parks broke consumer law.
The pipeline is growing. In March 2026, the CMA opened online reviews investigations into Autotrader, Dignity, Feefo, Just Eat and Pasta Evangelists. In August 2026 it opened drip pricing investigations into Trainline, Virgin Atlantic and RED Driving School, each of which had previously received an advisory letter. The CMA has reached no conclusions in those open cases.
How a CMA consumer investigation works
- Monitoring and advisory letters. The CMA reviews websites and complaints, and often writes to businesses first, warning of concerns.
- Case opening. The CMA opens a formal investigation and normally announces it publicly, naming the business.
- Information gathering. It issues information notices, which must be answered fully and on time. Failure can attract its own penalty.
- Provisional findings. The CMA sets out its provisional view, and the business can make representations and access the file.
- Settlement discussions. The business may admit the breach and settle, receiving a discount and agreeing not to appeal.
- Final decision. The CMA issues a final infringement notice, which may include a penalty, directions to stop the conduct and redress for consumers.
- Appeal. A business that has not settled can appeal to the courts; the Euro Car Parks case shows penalties are challenged in the High Court.
Treat the first CMA letter as the start of a regulatory investigation, not a customer complaint. Preserve documents, take advice before responding to any information notice, and work out early whether settlement is realistic. The 40% settlement discount and the refund obligations both depend on decisions taken in the first weeks.
Illustrative scenario: an online events platform
This scenario is illustrative only and uses generic parties.
An online events platform shows ticket prices in search results and adds a mandatory "service fee" and "order processing fee" at checkout. Its product pages also display countdown timers that reset each day, and its checkout pre-selects ticket insurance.
After the CMA's advisory letters to its sector, the business commissions a compliance review. Lawyers recommend that all mandatory fees appear in the first price shown, that countdown timers be used only for genuinely time-limited offers, and that insurance be offered as an unticked option. The business also documents its review policy and its handling of incentivised reviews. When a CMA information request arrives months later about historic practices, it can show swift remediation, which matters for any penalty and for the refunds the CMA may require.
Had the business waited, the picture could have been different. A formal investigation would have been announced publicly, naming the platform, and any penalty would have been assessed against its global turnover. Refunds to customers who paid dripped fees could have been required on top. Early remediation does not erase past breaches, but it limits their duration, supports mitigation and makes settlement on better terms more likely.
Common risks and mistakes
Treating mandatory fees as optional extras
Labelling a booking or service fee as separate does not make it optional. If a consumer cannot buy the product without paying it, the CMA treats it as part of the total price, which must be shown from the outset under section 230. Variable charges that cannot be calculated in advance still need clear explanation of how they will be worked out. Review every pricing page, search result, comparison feed and advert, not just the checkout.
Ignoring an information notice or responding late
Information notices carry their own penalties of up to 1% of global turnover, with daily penalties for continued failure. The Euro Car Parks penalty shows the CMA will use this power even where it has not opened an investigation into the underlying conduct. Diarise deadlines, ask for an extension in writing if needed, and make sure responses are complete and accurate: giving false or misleading information is also sanctionable.
Assuming small businesses are not targets
The CMA has fined a London gym franchise operating four sites, not only multinational platforms. The minimum statutory maximum of £300,000 means the cap can be significant for smaller businesses, and refund orders can add more. Smaller traders often rely on third-party booking, review or checkout software; you remain responsible for how your prices and reviews are presented to consumers, so check vendor configurations.
Overlooking the subscription contracts regime
The DMCC Act also creates a new subscription contracts regime, with obligations on pre-contract information, reminders, cooling-off and easy cancellation. As of October 2026 it is not yet in force; the government has indicated it is expected to start in early 2027. Subscription businesses should start redesigning journeys now. See our guide to subscription contracts rules.
Cross-border businesses selling into the UK
DMCC Act consumer enforcement is not limited to UK-incorporated companies. The unfair commercial practices rules apply to commercial practices directed at UK consumers, and the CMA's penalties are calculated on global turnover. Overseas retailers, marketplaces and apps selling into the UK, including groups in Bangladesh, the Gulf and Asia, should check their UK-facing sites against the same rules.
Group structure does not provide a shield. Where a UK-facing website is run by a foreign affiliate, the CMA can address the entity responsible for the commercial practice, and reputational damage from a published investigation affects the whole brand. Groups should appoint a UK compliance owner and make sure local marketing teams understand UK pricing and review rules.
The EU has its own consumer enforcement rules under the Consumer Protection Cooperation Regulation and national law, so a pan-European journey that complies in one market may still breach UK requirements, particularly on total price and reviews.
What to do now: a compliance checklist
A credible compliance programme is the best defence to DMCC Act consumer enforcement. It reduces the chance of an investigation, and if one starts, it supports mitigation. Focus on the following:
- Map every consumer journey and check that mandatory fees are in the headline price.
- Remove false urgency: countdowns, "last chance" claims and limited-stock messages must be true.
- Replace pre-ticked boxes for paid extras with active opt-ins.
- Publish and enforce a clear policy on fake and incentivised reviews.
- Set up a protocol for CMA letters and information notices, with legal sign-off.
- Prepare subscription journeys for the new regime expected in early 2027.
- Train marketing, product and customer service teams on DMCC Act consumer enforcement risks.
TRW & Co's London office, authorised and regulated by the Solicitors Regulation Authority, advises businesses on consumer law compliance, CMA investigations and responses to information notices through our consumer protection and competition teams, working with our advertising and marketing lawyers. Contact us at info@trw.co.
Frequently asked questions
01When did the CMA's DMCC Act enforcement powers start?
The consumer protection provisions of the Digital Markets, Competition and Consumers Act 2024, including the CMA's direct enforcement powers, came into force on 6 April 2025. From that date the CMA can investigate and decide whether consumer law has been infringed and impose fines and redress without first going to court. The powers are not retrospective, so the CMA cannot fine for conduct that ended before the regime began, although earlier conduct may still be relevant to other remedies.
02How much can the CMA fine a business for breaching consumer law?
For infringing consumer protection law, the CMA can fine up to 10% of a business's global turnover or £300,000, whichever is higher. Breaching undertakings given to the CMA can lead to fines of up to 5% of global turnover, with daily penalties. Failing to comply with an information notice, concealing evidence or giving false information can lead to fines of up to 1% of global turnover, again with possible daily penalties. The CMA can also require refunds or compensation.
03What is drip pricing and why is it illegal?
Drip pricing is showing a headline price and then adding mandatory fees, such as booking, service or delivery charges, later in the buying process. Under section 230 of the DMCC Act, an invitation to purchase must include material information, including the total price, so unavoidable charges must be included from the outset. Optional extras may be shown separately. The CMA's first fines, including against StubHub and Gold's Gym, involved mandatory fees not included in the upfront price.
04Can a business appeal a CMA consumer enforcement decision?
Yes, a business that has not settled can challenge a CMA decision in the courts. Euro Car Parks, for example, has appealed its information notice penalty to the High Court, and that fine is not payable until the appeal is determined unless the court orders otherwise. Businesses that settle with the CMA receive a discount, which has been 40% in the announced cases, but agree not to appeal or challenge the decision in court.
05Does the DMCC Act apply to businesses outside the UK?
The unfair commercial practices rules apply to practices directed at consumers in the UK, so overseas businesses selling to UK customers can be within scope. The CMA calculates maximum penalties by reference to global turnover. In practice, international retailers, marketplaces, apps and travel businesses that target UK consumers should treat their UK-facing websites and sales journeys as subject to the regime and review them accordingly.
06When do the new subscription contract rules start?
As of October 2026, the DMCC Act subscription contracts regime is not yet in force. The government has indicated that it is expected to commence in early 2027. When it applies, businesses offering subscriptions will need to give clear pre-contract information, send reminders before renewals and the end of free or discounted trials, offer cooling-off rights and make cancellation straightforward. Subscription businesses should begin redesigning customer journeys now.
Sources and official materials
- Digital Markets, Competition and Consumers Act 2024 — The Act, including Part 3 enforcement and Part 4 consumer rules
- Direct consumer enforcement guidance: CMA200 — How the CMA uses its direct enforcement powers
- Unfair commercial practices: CMA207 — CMA guidance on the unfair commercial practices provisions
- CMA fines firms £6 million for misleading sales tactics — Wayfair, Appliances Direct and Gold's Gym decisions, October 2026
- CMA orders StubHub UK to refund customers over hidden fees — First drip pricing fine and refunds, June 2026
- CMA launches major consumer protection drive — First investigations and penalty levels, November 2025
- Euro Car Parks Ltd fixed penalty — Penalty for failing to comply with an information notice
- Online consumer reviews case page — Fake reviews investigations opened March 2026
General information only, current as at 21 October 2026. It is not legal advice and does not create a solicitor–client relationship. It reflects the law of England and Wales unless stated otherwise; Scotland and Northern Ireland have separate legal systems, and the law changes frequently. Check current official sources and take advice on the facts of your matter.