CMA investigations and updated price transparency guidance under the DMCC Act

Who does this apply to?

Any business or trader that advertises, markets, sells, or promotes products to UK consumers at any point in a purchase process, from early-stage advertising to final purchase. This includes:

• Retailers (online and offline)
• Service providers (e.g., travel, hospitality, subscriptions)
• Platforms and intermediaries (e.g., marketplaces, comparison sites)
• Influencers and brand owners promoting products.

DMCC Act applies even if the trader is based outside the UK but directs activities to UK consumers.

Why is this important?

Clear pricing is essential for informed consumer decisions and fair competition. Misleading or incomplete pricing undermines consumer trust and creates an uneven playing field for compliant businesses. When a trader gives information to consumers about a product and its price, this will normally be an ‘invitation to purchase’. Invitations to purchase are important because it is vital that shoppers can access clear and timely pricing information.The DMCC Act strengthens rules on price transparency and prohibits practices like drip pricing and partitioned pricing. Consumers should be given the information they need to make informed decisions, shop around and compare the prices of competing products. Price transparency therefore not only benefits consumers but, by promoting competition, it also benefits fair-dealing businesses and the wider economy.

Key compliance requirements

Pricing transparency applies to all invitations to purchase, including ads, listings, menus, and promotional content. The core principles of pricing transparency requirements are summarised as follows:

Total Price Disclosure:

• Price (or method of calculation) must be clear, timely, and as prominent as any other price information; and 
• The full price must be shown upfront, including all mandatory fees, taxes, and charges. 
  
  

No Drip Pricing: 

• Showing consumers an initial headline price for a product and subsequently introducing additional mandatory charges as consumers proceed with a purchase is prohibited. 
  
  

No Partitioned Pricing: 

• Do not list components without giving the total price. A headline price inclusive of all the calculable elements should be provided to a consumer. 
• For example, where the total price is made up of several components, which are also each listed, the cost of those components must be added together for the consumer into a total price and it must be shown to them in the invitation to purchase in a clear and timely way. 
  
  

Mandatory vs Optional Charges:

• Mandatory charges (e.g., VAT, booking fees, unavoidable delivery costs) must be included in the total price.
• Optional extras (e.g., premium delivery, add-ons) can be shown separately.
  
  

Special Cases:

• If total price cannot be calculated upfront, provide clear unit pricing and calculation method.
• For periodic contracts, state either total cumulative price or total per period (with commitment term)
  
  

Non-Compliance Consequences 

If a business or trader infringes DMCCA and the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, the CMA can issue fines up to 10% of a global turnover.

If a company breaches undertakings it has given the CMA, it could face fines of up to 5% of its global turnover – with additional daily penalties for continued non-compliance. 

Failure to provide information when requested (without a legitimate reason), concealing evidence, or providing false information can likewise result in a fine, with penalties of up to 1% of a business’ global turnover and additional daily penalties.

What you need to do now 

It is important for businesses to have appropriate measures in place to address the risks of non-compliance, penalties, enforcement action or any risk of reputational damage. These measures include, by way of example 

• Audit all consumer-facing pricing: websites, apps, ads, menus, and promotional materials;
• Update pricing displays: Ensure total price includes all mandatory charges;
• Review marketing practices: Remove drip pricing and partitioned pricing;
• Train staff and partners: Ensure compliance across sales channels and intermediaries; andImplement compliance checks: Especially for dynamic pricing, delivery charges, and subscription models.

How can we help

Eversheds Sutherland’s dedicated Consumer Law and Competition, Trade & Foreign Investment teams, who have extensive experience of dealing with the CMA and of  cross-sector regulatory investigations, are together uniquely placed to support businesses in providing coordinated advice on black-letter consumer law with significant on-the-ground enforcement experience. Please reach out to a member of the team if you would like to the new guidance means for your business and how to implement appropriate measures.

Further reading

For further information regarding our  DMCC briefings, please see:

• Fake reviews now expressly banned under new UK consumer law
• UK's Digital Markets and Consumers Act podcast series
• The UK's CMA consults on its draft direct enforcement guidance and rules
• UK Digital Markets, Competition and Consumers Bill moves one step forward to being adopted
• A new dawn for UK competition law: significant reforms on the horizon
• The impact of the Digital Markets Competition and Consumer Bill on enforcement
• A new Dawn for UK Consumer Law: Countdown to consumer law changes under the DMCC in Spring 2025