The Competition and Markets Authority (CMA) is shifting its focus towards strengthening consumer protection under the newly implemented Digital Markets, Competition and Consumer Act (DMCCA). This initiative is designed to enhance the effectiveness and speed of consumer enforcement, ultimately benefiting both UK consumers and compliant businesses. The CMA believes that a robust consumer protection regime will promote fair competition, allowing honest businesses to thrive without the threat of unfair advantages from those who violate the law.

Competition law advisors are advised to prepare their clients for increased scrutiny and enforcement actions from the CMA. Businesses must ensure compliance with consumer protection laws to avoid penalties and maintain a competitive edge. Advisors should guide their clients on providing clear and accurate information about their products and services, as consumer confidence is vital for market growth. The CMA's proactive stance on consumer rights is expected to influence business practices and strategies moving forward.

In the coming year, the CMA has outlined two primary priorities: assisting businesses in complying with consumer laws and taking action against serious violations that harm consumers. The authority plans to engage with businesses and advisory groups to enhance understanding of compliance, responding to feedback that previous guidance was overly complex. The CMA has simplified its materials, offering clear examples of unfair practices and creating shorter guides for easier comprehension.

Competition law advisors should note that the CMA is actively seeking input on areas where businesses still lack clarity regarding compliance. This feedback will help the CMA prioritize its guidance and enforcement actions. Initial enforcement efforts will focus on serious consumer harm cases, including aggressive sales tactics, false information, and unfair contract terms. Advisors should prepare their clients for potential scrutiny in these areas and emphasize the importance of compliance to avoid penalties.

Recent monitoring of compliance with the DMCCA provisions has shown positive changes in some businesses, while those that have not adapted will be closely monitored for potential enforcement actions. Key changes in consumer law include stricter rules on price transparency and the prohibition of drip pricing, which has been estimated to cost consumers £2.2 billion annually. Businesses must clearly communicate total prices, including all mandatory fees, to avoid penalties.

The CMA has introduced new regulations targeting fake reviews, building on previous actions against major companies. These regulations impose specific obligations on businesses to prevent and address fake or misleading information. For the first three months of this new regime, the CMA will prioritize helping businesses comply rather than enforcing penalties, while actively monitoring the landscape for violations.

The CMA has also launched a framework called the '4Ps' to improve its processes in consumer protection, emphasizing speed, fairness, and predictability in decision-making. Key changes include publishing timetables for investigations, efficient case management, and expectations for businesses to respond promptly to information requests. The CMA plans to issue more guidance to help businesses comply with consumer law, particularly for new regulations.

Overall, competition law advisors should prepare their clients for increased scrutiny and potential enforcement actions related to these new consumer protection laws. The CMA's strong consumer protection function is expected to boost consumer confidence and market health in the UK, allowing honest businesses to compete fairly.