The new consumer enforcement landscape one year in

It’s been 12 months since the Competition and Markets Authority (CMA) was granted its direct consumer enforcement powers under the Digital Markets, Competition and Consumers Act 2024 (DMCC Act). For retailers, it’s now a good time to take stock and consider what the activity so far shows and how to ensure compliance so they don’t come under the CMA’s radar on this. The headline point from the new powers granted by the DMCC Act is the possibility to sanction non-compliant operators up to 10% of global turnover for consumer law breaches. Suffice to say, the CMA has been busy and there is a clear shift to faster, more assertive enforcement, with retail practices firmly in the spotlight.

The message for retailers is clear: transparent pricing, ensuring genuine reviews and fair customer journeys are now core compliance risks, not just hygiene issues for the marketing team to deal with.

CMA activity on consumer enforcement to date

In the 12 months since the new regime came into force (April 2025–April 2026), the CMA has:

• opened 14 consumer enforcement investigations
• secured £760,000 in consumer refunds
• imposed £4.7 million in fines
• issued 157 advisory and warning letters to businesses
• sent 46 statutory information notices requiring formal responses.

Retail businesses have featured prominently in the CMA’s engagement activity, including sector‑wide reviews and proactive compliance ‘nudges’. In particular, there are currently three investigations ongoing in relation to retail operators – Wayfair, Appliances Direct and Marks Electrical.

The CMA has also stated that it is focusing on conduct that is widespread across sectors, clearly unlawful, and most harmful to household budgets, particularly during ongoing cost‑of‑living pressures.

Retail pricing, promotions and digital journeys sit squarely within this category.

 Key consumer risk areas for retail businesses

1. Pricing and promotions (including drip pricing). It’s no surprise that the CMA’s highest‑profile enforcement area to date relates to pricing as it had identified this as a key focus area and evidence on pricing breaches is relatively easy to collect. Pricing infringements can also be difficult to defend after the event. This could be the reason why the AA took the option of an early settlement with the CMA resulting in a 40% reduction in the penalty imposed, which was nevertheless a staggering £4.2m. Taking into account the additional order from the CMA to refund affected customers which amounted to £760,000, this was overall a hefty first penalty for infringing activity under the new regime.

Key pricing risks for retailers include:

• mandatory charges revealed late in the checkout process, such as the AA’s £3 booking fee which was found to infringe requirements
• mandatory delivery, booking or handling fees added after headline prices
• ‘partitioned’ prices that give a misleading overall impression of genuine pricing levels
• discounts that are not genuine or are calculated from inflated reference prices.

2. Online reviews and ratings. This is another key area of concern where it has been acknowledged that sellers needed to get their houses in order. The CMA has written to 54 review publishers, prompted compliance changes in about 90% of them, and opened five investigations into suspected fake or misleading reviews. Retailers in particular are exposed – not only through their own websites, but also via third‑party platforms, marketplace listings, and influencer or affiliate content.

3. Online choice architecture (‘dark patterns’). The CMA is also targeting digital design practices and purchase ‘journeys’ that steer consumers unfairly, including pre‑ticked boxes, default add‑on products or repeat purchase orders, countdown timers or other urgency and scarcity claims that are not genuine. This area is particularly relevant to fashion and fast‑moving consumer goods, flash sales and promotional events, and high-volume e‑commerce retailers. It is becoming clear that user experience and conversion optimisation strategies now carry significant regulatory risk and should be assessed through a consumer‑law lens.

What retailers should focus on now

 Looking ahead, the CMA has identified priority areas where businesses should act promptly:

• Price transparency – review headline prices, discounts, delivery charges, returns fees and in‑store / online consistency.
• Reviews and endorsements – ensure reviews are genuine, clearly labelled and properly moderated, including on third‑party platforms.
• Consumer terms and exit charges – pay particular attention to refunds, returns and cancellation provisions, in light of updated guidance expected by Autumn 2026.
• Subscriptions and auto‑renewals – retailers offering repeat delivery, memberships or loyalty programmes should prepare for new rules expected in Spring 2027.
• Use of AI in retail journeys – the CMA has signalled scrutiny of AI‑driven recommendations, pricing tools and ‘agentic’ systems that may influence consumer behaviour.

The Birketts view

There are a number of ways in which we can support retail clients, including:

• pricing and promotions compliance reviews
• environmental claims audits
• website and checkout journey assessments
• reviews and influencer governance frameworks
• preparation for subscription and refunds reform
• responding to CMA engagement and information notices.

Birketts’ retail team provides commercially focused, multi‑disciplinary advice to businesses navigating changing consumer behaviour and a fast‑moving, competitive market. We support clients from start‑ups to premium high street brands across all aspects of retail, including real estate, health and safety, IP, ecommerce, franchising, and advertising and competition law. Our depth of sector experience enables us to guide retailers confidently at every stage of their business.

If you would like to discuss the implications for your retail operations, please contact Duncan Reed who will be delighted to assist.