Digital Markets, Competition and Consumers Act and Consumer Protection Regulations
Basic rules
The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) were largely reinstated in the Digital Markets, Competition and Consumers Act (DMCC Act) from 6 April 2025. The CPRs will apply to unfair commercial practices that took place before this date.
These protection from unfair trading provisions address:
- A general ban on unfair commercial practices
- A ban on misleading and aggressive practices, which are assessed in light of the effect they have, or are likely to have, on the average consumer
- A ban on omitting material information from an ‘invitation to purchase’ (including drip pricing)
- A 'blacklist' of commercial practices which will always be unfair and so are banned outright. There are 32 banned practices under the DMCC Act, and one new banned practice is fake reviews.
What is unfair?
A commercial practice is 'unfair' if it affects, or is likely to affect, the average consumer's ability to make an informed decision about whether to purchase a particular product involving one or more of the following:
- It's a misleading action or omission;
- It's an aggressive practice;
- It falls below the standards a trader in that industry would be expected to exercise towards customers
- It omits material information from an invitation to purchase.
There doesn't need to be an actual transaction between the consumer and trader for a transactional decision to exist. In the case of these blacklisted practices, there's no need to show that they influenced the consumer's decision in any way.
A trader will commit an offence under the Act if they engage in an 'unfair' practice.
Misleading actions
It's an offence for traders to use misleading or underhanded tactics to get you to part with your cash or make some other transactional decision that you wouldn't otherwise have made.
Under the Act, a trader’s actions would be considered misleading if:
- They give false or misleading information about a product, a trader or anything else that affects a consumer’s decision to buy
- They present information in a way that could mislead the ‘average consumer’ about a product, trader or other relevant details related to a transaction
- They advertise a product in a way that's likely to create confusion by using a trade mark, name or a distinguishing mark of another trader
- They claim to follow a code of conduct, but fail to comply.
Information that may impact a consumer’s decision if it's false could include advertising goods that don't exist, offering just a few items at the advertised price with no hope of meeting large demand and making misleading comparisons. For example, a trader can't claim 'product A lasts twice as long as product B' if, in fact, Product A only lasts slightly longer.
If a trader has signed up to a code of practice and fails to follow it, this could be a breach. For example, if a garage has signed up to the Motor Industry Code of Practice for Service and Repair, failing to follow it could constitute a breach of the Act.
Giving false information about the characteristics of goods (for example, 'we only sell genuine, branded parts', when in reality they're selling non-branded spare parts) and about whether a product needs servicing or replacing could also be a misleading action.
It could also be unlawful for traders to mislead consumers about their legal rights or for a trader to give false or deceptive information about their business, status or qualifications.
Misleading omissions
Sometimes it's not what's actually said that's the problem – sometimes it's what's been left out that's the issue.
Consumers are protected against traders which are economical with the truth or miss out key information that you might need to make an informed decision.
Traders must make sure the information is provided in a timely manner, and not so late that it's of no use to you.
A trader will be committing an offence if it does any of the following:
- Omits material information that the average consumer needs, according to the context, to make an informed decision about a transaction
- Hides or provides material information in an unclear, unintelligible, ambiguous or untimely manner
- Fails to identify that a transaction has a profit-making motive (where this isn't already apparent from the context).
Information must also be displayed clearly – obscure presentation is tantamount to an omission.
Drip pricing
The Act bans drip pricing. This is when a consumer is given an initial price for a product or service and is then faced with additional mandatory charges in the transaction process. For example, only learning about a ‘weekend surcharge’ in the last stages of the purchase of a hotel booking.
These drip pricing provisions have been included as part of a separate unfair commercial practice relating to the omission of material information from an 'invitation to purchase'.
Material information could include a product's main characteristics, the total price (if the price can't be calculated, details on how the price will be calculated must be provided), the trader's identity and the business address.
Sales tactics
Sales tactics can greatly influence a consumer's decision. Traders who fail to take no for an answer, make unwanted and persistent marketing calls, refuse to leave until a contract is signed or use threatening behaviour will be committing an offence.
A commercial practice is considered aggressive if it uses harassment, coercion or undue influence.
The legislation contains a list of criteria to help determine whether a commercial practice uses harassment, coercion, including physical force or undue influence. These criteria include the timing and location of the practice, whether the practice involves the use of threatening or abusive language or behaviour and whether the practice exploits a consumer's vulnerability.
Undue influence is defined as 'exploiting a position of power in relation to a consumer so as to apply pressure in a way which significantly limits the consumer’s ability to make an informed decision.'
In practice
If a trader is accused of misleading consumers or acting aggressively, simply demonstrating the activity isn't enough.
It also has to be shown that the practice influenced the consumer's decision or is likely to influence consumers' decisions.
This doesn't necessarily mean that the consumer has to have entered into a contract; it just means that their actions were influenced in some way.
It could be enough that the consumer phoned the trader or decided to go into their shop.
There are certain allowances traders will be expected to make for consumers who are considered to be vulnerable. The DMCC Act extends the definition of a vulnerable consumer beyond age or health to also include 'situational vulnerability'. This means circumstances, such as a job loss, divorce or grief, could be considered a vulnerability under the Act.
Blacklist of banned practices
In addition to tackling misleading and aggressive behaviour, there are blacklisted 32 specific practices, such as misuse of trust marks, fake reviews, claiming something is free when it's not and persistent cold-calling.
In the case of these blacklisted practices, it's enough simply to demonstrate wrongdoing and there's no need to show that it influenced the consumer's decision in any way. Of the 32 blacklisted practices, 29 amount to criminal offences.
The banned practices are to ensure that traders, marketing professionals and customers are clear about what's prohibited and help provide consumer protection.
The list of banned practices includes the following:
- Fake reviews The DMCC Act banned the publishing, commissioning and submission of fake reviews. Traders must also not incentivise reviews.
- Bait advertising Luring the consumer with attractive advertising around special prices when the trader knows that they can't offer that product or only has a few in stock at that price.
- Bait and switch Promoting one product with the intention of selling you something else
- Limited offers Falsely stating that a product will only be available for a very limited time, or that it will only be available on particular terms for a very limited time, in order to elicit an immediate decision and deprive consumers of sufficient opportunity or time to make an informed choice.
- False free offers Describing a product as free or without charge if the consumer has to pay anything other than the unavoidable cost of responding to the offer and collecting or paying for delivery of the item.
- Pressure selling Creating the impression that the consumer can't leave the premises until a contract is formed.
- Aggressive doorstep selling Conducting personal visits to the consumer's home, ignoring the consumer's request to leave or not to return.
Subscription contracts
The DMCC Act creates a new regime for subscription contracts, which are considered to be contracts that automatically renew with an indefinite or fixed period.
Under the Act, you should be provided with:
- Pre-contract information: this should include information on the contract, prices and how to cancel the contract
- A cooling-off period of at least 14 days
- Reminders for renewals and the right to end the contract before a trial period ends
- Cancellation rights.
Enforcement
Protection from unfair trading that occurred before 6 April 2025 falls under the Consumer Protection from Unfair Trading Regulations 2008 (CPRs), after this date the Digital Markets, Competition and Consumers Act (DMCC Act) applies.
Previously, under the CPRs, all enforcement action against unfair commercial practices had to be brought in the courts. Under the DMCC Act, the Competition and Markets Authority (CMA) has the power to determine whether consumer protection laws have been breached and to take action directly against businesses to address breaches, including through penalties.
Penalties include fines of up to 10% of the infringing party’s worldwide turnover or £300,000, whichever is higher. The CMA can enforce consumer law and decide appropriate redress, without having to apply to the courts.
Right to redress
For unfair commercial practices involving a misleading action or an aggressive practice, the CPRs continue (for the time being) to provide consumers with rights of redress enforceable through the civil courts.
Redress breaks down to three key areas.
1. A right to undo the contract
You will have 90 days to end the contract and get a refund. The 90-day time limit will start on the latest of when:
- You entered into the contract
- You first received the goods, services or digital content
- The lease began (if the contract is a lease), or
- Your right of cancellation is first exercisable.
You can only receive a refund if you haven't fully consumed goods or digital products, or received a service in full.
This is also on the provision that any goods supplied to you are made available for collection by the trader.
It's important to note that if you took out finance to pay for a contract that was made as a result of misleading or aggressive selling, you can get out of the contract and recoup anything that you have paid.
2. A right to a discount on the price paid
You will be able to seek a discount in respect of past or future payments due under a contract.
For contracts worth £5,000 or less, you could receive a 25%, 50%, 75% or 100% discount on the payments depending on whether the trader's breach is considered to be minor, significant, serious or very serious. For contracts worth more than £5,000, you're entitled to a discount to the extent that the contract price exceeds the market price.
The level of seriousness of the trader's actions will depend on their behaviour, the impact this has had on you and how long it has been since you signed the contract.
If you choose to receive a discount, you can't then cancel the contract: you have to choose one remedy or the other.
3. An entitlement to seek damages
If you incur a financial loss that you wouldn't have done if it weren't for the trader's actions, you'll be able to make a claim for damages. You can make a claim for damages as well as choosing to receive a discount or cancel the contract.
A claim can also be made if you have suffered alarm, distress, or physical inconvenience or discomfort as a result of the trader's actions.
Be aware that traders have a defence to many of the offences set out in the Regulations if they can demonstrate that their actions were due to an accident, a mistake, the act or default of another person, information supplied by another person or factors outside of their control. However, they can only rely on this defence if they took reasonable precautions and exercised all due diligence to avoid committing the offence.