Brace for Action: CMA to Start Enforcing New Consumer Law Powers

These powers mark a major shift in the UK’s consumer enforcement landscape, aligning the CMA’s consumer remit more closely with its competition enforcement toolkit. For the first time, the CMA can directly determine breaches of consumer law and impose substantial penalties, without needing to go through the courts. This is part of a wider global trend in consumer enforcement by competition authorities.

Now, three months into the new regime, businesses should be aware that the CMA is preparing to actively use these powers. In its Consumer Approach Guidance (“Guidance”), the CMA made clear that it will not delay in taking action where it sees serious harm to consumers, particularly in areas of essential household spending or where practices are clearly unlawful.

In this briefing, we look ahead and set out what cases the CMA is likely to prioritise in the coming months.

What will be enforced?

In the first 12 months, the CMA has signalled it will focus on conduct that causes the greatest harm to consumers and clear-cut breaches especially where businesses have failed to heed previous warnings or guidance. This approach allows the CMA to establish early deterrents while giving businesses time to adjust in areas where the law is less settled. The CMA will prioritise:

• Aggressive sales practices that exploit consumers in vulnerable situations
• Objectively false or misleading information provided to consumers
• Unfair contract terms, particularly those that are clearly imbalanced or include excessive exit charges

For new or more ambiguous areas of law, the CMA is expected to take a more measured approach, likely issuing warnings or guidance before launching formal investigations. This reflects a recognition that businesses need time to adapt to the new regime, especially where case law is limited and the legal boundaries are still evolving.

How will this be enforced?

The CMA is under pressure to demonstrate pace, predictability, proportionality, and procedural clarity under its new “4Ps” framework. As such, it is likely to prioritise enforcement in cases with a direct and tangible impact on consumers, particularly in sectors involving essential spend, such as heating, groceries and housing.

The fact that the CMA can now take direct enforcement action without having to go to court, is expected to make enforcement faster, more flexible, and more impactful.

In the early stages, the CMA will take a targeted and proportionate approach. For minor or technical breaches, it is likely to engage with businesses constructively, encouraging voluntary compliance and offering guidance where needed. The emphasis will be on raising standards, not catching businesses out. For more serious or deliberate breaches, the CMA may use its full range of investigatory tools, including: requests for information; interviews with company personnel, and dawn raids.

While dawn raids are expected to be rare, and are more common in competition law enforcement cases where infringements are often covert, they may still be used in consumer cases involving egregious conduct or risk of evidence destruction.

In all cases, early cooperation and transparent engagement can help mitigate enforcement outcomes and demonstrate a commitment to compliance.

In addition to CMA-led enforcement, businesses should also be aware of the increased risk of private claims under the new regime. Consumers and representative bodies may seek compensation through the courts, particularly where CMA findings establish a clear breach of consumer law.

What are the consequences?

In most cases, the CMA is expected to prioritise: consumer redress, ensuring that affected individuals are compensated or otherwise made whole; and forward-looking remedies, such as commitments or undertakings to secure future compliance.

Financial penalties (see summary below) will be reserved for more serious or deliberate breaches. Where fines are imposed, they will reflect the severity, scale, and impact of the conduct. Penalties will be lower in the early stages of the regime, particularly where the law is still developing or where businesses have acted in good faith.

However, penalties may be higher where:

• a business has previous compliance issues, such as failing to comply with past enforcement action by the CMA or another regulator;
• the conduct is particularly harmful or deceptive; or
• the business has failed to take proactive steps to correct the issue once identified.

Importantly, the CMA will take into account any voluntary redress schemes or meaningful remedial actions taken by a business when assessing the appropriate level of penalty. This creates a strong incentive for businesses to act swiftly and transparently if problems are uncovered.

When will enforcement start?

Enforcement is expected to start soon. With the CMA’s enhanced enforcement capabilities now active, [and with new powers coming into force over the next few months], businesses must act swiftly to align with the new regulatory landscape. Key recommended actions include:

• Review consumer-facing practices especially in areas like pricing transparency, contract terms, and sales tactics.
• Audit compliance systems, including dawn raids policies and protocols to ensure they reflect the new legal framework and CMA guidance.
• Train relevant staff, particularly those in marketing, sales, and customer service, on the new risks and expectations.
• Monitor CMA updates, including forthcoming guidance on drip pricing and subscription contracts.
• Engage early with legal or regulatory advisors if there is any uncertainty about compliance.

Taking these steps now can help avoid enforcement action, reduce reputational risk, and demonstrate a commitment to fair treatment of consumers under the new regime.

What to do if the CMA comes knocking?

• Respond promptly: Reply to any CMA RFI within the specified deadline.
• Be transparent: Provide full and accurate information. Withholding or misrepresenting facts can escalate enforcement.
• Engage early: If issues are raised, engage constructively. Early cooperation may reduce penalties or avoid formal action.
• Review internally: Conduct a quick internal review of the relevant practices and documentation.
• Prepare for interviews or site visits: Ensure relevant staff are briefed and understand their obligations.
• Document everything: Keep a clear record of all communications and steps taken in response to the CMA.
• Seek legal advice: Involve legal counsel early, especially if the CMA signals a formal investigation.

Other jurisdictions

The CMA is not alone in bringing in these types of changes. A number of other national competition authorities in the EU have already combined competition and consumer enforcement powers (including the Dutch Authority for Consumers and Markets, the Hungarian Competition Authority and the Irish Competition and Consumer Protection Commission) and can also impose fines or impose obligations to stop the unlawful conduct in both areas.

The European Commission has no enforcement powers as such, but can alert national consumer protection authorities and coordinate their action to tackle practices which harm a large majority of EU consumers, including leading settlement negotiations with the businesses concerned.