In April 2025, the UK conducted a sweeping overhaul of its consumer protection laws. The changes—aimed at setting a new benchmark for transparency and fairness in digital commerce—come with some of the toughest enforcement regimes in consumer law. The new regime is not a set of suggested guidelines. Instead, it’s a legally binding framework that is enforceable without court proceedings.
Businesses found to infringe the rules could face fines that are up to 10% of their global turnover. If your e-Commerce business operates in the UK—even as a non-UK entity—these rules apply to you. For business-to-consumer (BSC) companies, including beauty brands, direct-to-consumer (DTC) sellers, and online platforms, now is the time to review your legal obligations under these updated UK consumer laws.
Which UK consumer laws are changing?
On April 6, 2025, significant changes took effect under the UK’s Digital Markets, Competition, and Consumers Act 2024 (DMCCA). New rules targeting unfair commercial practices were introduced, and the enforcement powers of the regulatory authority, the Competition and Market’s Authority (CMA), were strengthened.
These changes are not to be treated lightly. The DMCCA introduces substantial amendments to the UK’s current consumer protection laws, especially in the context of the digital economy. Under Part 4 of the DMCCA, new rules on subscription contracts prevent businesses from creating “subscription traps,” and under Schedule 20, the DMCCA revises the Consumer Protection from Unfair Trading Regulations 2008 (CPUT) by introducing a list of practices that are automatically deemed unfair in any and all circumstances.
These changes mean that fake reviews, omitting information from an invitation to purchase, and drip pricing are all automatically treated as unfair commercial practices. This means that they are treated as practices that are inherently unfair and that a consumer doesn’t need to prove that they have caused any particular type of harm or damage.
The DMCCA also gives the CMA a lot more power. They can now fine companies that break consumer law either £300,000 or 10% of annual turnover, whichever is higher. The CMA has made it quite clear that it will strongly enforce consumer laws and punish any businesses that choose not to comply with the rules.
Let’s take a look at the key changes in turn.
1. A ban on fake or misleading reviews
Businesses can no longer host, promote, or submit fake or unverified reviews. The act bans any commissioning or submitting of fake reviews, the offering of services that facilitate fake reviews, along with prohibiting the publication of any reviews that are not the result of genuine customer experiences.
Businesses must always verify that reviews come from real customers, and if reviews are moderated, businesses must disclose this fact along with details of how they are moderated.
In January 2025, Google agreed to make substantial changes to its processes as part of an effort to tackle fake reviews of UK businesses. Google accounts for 90% of search in the UK and these changes will mean that repeat offenders—individuals who consistently post either misleading or fake reviews—will be banned from posting reviews, regardless of where they are posting from in the world. If Google fails to stick to its proposed changes, critics think it may face intense scrutiny and heavy fines from the CMA.
Reviews aren't the only area regulated by consumer laws. The DMCCA also empowers the CMA to tackle false green claims and misleading sustainability claims, such as stating a product is “plastic free” or “carbon neutral” without supplying evidence to back their statements.
2. Invitations to purchase must contain all material information
Under the CPUT, any invitations to purchase, for example in advertisements or product listings, that do not contain “material information” are prohibited. Material information includes, among other things, the trader’s identity, the product’s main characteristics, cancellation or withdrawal rights, and the total price plus any additional costs (freight, delivery, or postal charges).
Although this is not new law, the critically important change that businesses must pay attention to is that there is no longer a requirement to prove that the omission of material information may cause consumers to take a different decision. Instead, omitting material information constitutes an unfair commercial practice, and the CMA will take swift and severe action upon businesses that flout the rules.
3. Drip pricing is prohibited
Drip pricing, whereby a business advertises one price and hides additional fees or charges that are then presented later in the purchase process, is now banned under the latest UK consumer law changes. These fees, which could be for delivery, booking charges, or taxes, must now be included in the price upfront. Any advertisement of a lower “headline price” that is then inflated by non-optional costs added later in the customer’s buying journey will automatically be viewed as an unfair practice.
Businesses must always present the total price, including any fees, to the customer at first instance.
It’s important to note that the CMA has previously investigated companies over online sales practices that involve disingenuous discount claims and countdown clocks. One example is an investigation launched into Simba Sleep that concluded in September 2024 with the company agreeing to change its online sales practices. The mattress firm agreed to ensure that any ‘was’ price was genuine by way of the product having been sold at a sufficient volume at the ‘was’ price before being advertised at a discounted price. The use of countdown clocks and timers on websites also had to be clearer so that consumers were not given the false impression that they had to act quickly or that if they missed the promotional period, then the product price would return to the ‘was’ price (when actually, the price remained the same).
The CMA takes rules on pricing very seriously; in December 2016, 5 model agencies and their trade association were fined over £1.5 million ($1.98 million) for colluding on prices and consequently breaking competition law. Jump to March 2025, and Sky, BT, IMG, ITV, and BBC were collectively fined over £4 million for breaching the same rules, this time by colluding on rates of pay for freelancers.
4. Subscription contracts can’t be traps
New rules require businesses to ensure that consumers are provided with the right pre-contract information, reminders for renewals, a cooling-off period, easy termination options, and a cancellation notice.
Consumers must always give informed consent before subscribing and receive clear information at both the pre-contract period and at renewal. Consumers must also be able to benefit from a 14-day cooling-off period in which the consumer can cancel their contract and receive a refund following any of these three scenarios:
- The consumer enters into the contract
- The free or discounted trial period comes to an end
- A renewal takes place that commits the consumer to a further period of 12 months or more
Pre-contract information must contain “key” information and “full” information. These two types of information must be provided separately. For example, the “key” information must include any relevant information about fees after a free period or discounted trial period comes to an end, along with the frequency of payments thereafter. “Key” information must also stipulate how the consumer can terminate the subscription.
Businesses must now ensure that consumers can easily cancel subscriptions without having to face unnecessary obstacles. Consumers that entered a contract online, for example, must be able to easily exit it online. Businesses, therefore, need to ensure that cancellation and termination instructions are displayed online and easily accessible to customers. On termination of a subscription, businesses must send consumers an “end of contract notice” and repay any overpayments back to the consumer.
As these changes will apply to all businesses offering subscription-based services, any affected businesses should review their current subscription processes to ensure that they align with the updated consumer laws.
5. New CMA enforcement powers
Before these changes, the CMA had very little power of enforcement. It was only through court orders or voluntary undertakings that breaches of consumer law could be addressed by the authority.
Now, the CMA has a dual-track enforcement approach, as introduced by the DMCCA.
The CMA can enforce the rules through the courts, but through a much simpler court-based regime. Designated enforcers, including the CMA and some other regulatory bodies, can apply for court action against companies they believe are violating consumer protection laws. Sanctions on businesses found to be breaking the law are either 10% of the business’s global turnover or £300,000, whichever is higher.
The CMA can also directly enforce consumer protection laws and impose fines without relying on court orders or court intervention. Penalties imposed against non-compliant businesses are the same as those applicable in the court-based regime.
The CMA already has a track record of imposing hefty fines; on May 8, 2025, the UK Court of Appeal upheld the CMA’s finding that pharma company Advanz broke the law when it overcharged the NHS for an essential thyroid drug called liothyronine. The total fine on all parties: £99 million ($130 million). In March 2023, 10 construction firms were fined almost £60 million ($79 million) for bid rigging; CMA also secured the disqualification of 3 directors of the firms involved in the case.
Not a UK business? These UK consumer rules could still affect you
Plenty of DTC businesses and brands operate across borders, with manufacturers and distributors situated in multiple countries. If your business sells to any UK customers or uses selling platforms like Shopify or Amazon UK, these UK consumer rules apply to you.
To determine which rules apply to your business, focus on where your customers are and not just where your business is based.
Timeline for changes to UK consumer laws
Much of the DMCCA has already come into force this month; however, there are a few more changes still to come.
E-Commerce consumer compliance checklist
Here’s a comprehensive to-do checklist for businesses to comply with the new UK consumer protection laws under the Digital Markets, Competition, and Consumers Act (DMCCA) as of 6 April 2025.
How to future-proof your business with proactive compliance
The best way to navigate this shift is to center your legal compliance in your customer experience. By thinking about compliance as a starting point instead of an add-on, you can align your legal, product, and growth teams and build your product to be compliant from the core.
If you haven’t already begun taking action on the UK consumer law changes, now is the time to start bringing your business and marketing practices up to DMCCA compliance standards.
This means investing time and effort into reviewing commercial practices, digital content, and customer communications to see how they measure up against the new DMCCA requirements. You may need to substantially update organizational systems and practices, including how reviews are verified or how your pricing information is displayed for products or subscriptions.
How Legal Nodes can help businesses stay compliant
Navigating UK consumer law updates doesn’t need to slow your growth. At Legal Nodes, we help scaling businesses adapt fast. We provide compliance solutions that are AI-powered and expert-validated. Whether you need updated policies, clear guidance on drip pricing rules, or legal support when updating your subscription offerings, our teams can help. Plus, with our model, you only pay for what you need, when you need it. If you’re planning to scale across the UK or EU, find out how you can grow your business confidently and compliantly with Legal Nodes.
Commonly asked questions about UK consumer laws
What is the new consumer law in the UK?
The Digital Markets, Competition and Consumers Act 2024 brings major changes to UK consumer law, including bans on fake reviews and drip pricing, stronger enforcement by the CMA, and new protections for consumers. Most provisions, including direct CMA enforcement, take effect from April 2025.
How does consumer law affect a business?
Consumer law requires businesses to treat customers fairly, provide accurate information, and avoid misleading practices. Non-compliance can lead to investigations, fines, and reputational damage. The new law gives the CMA direct enforcement powers and the ability to impose significant penalties. Stay compliant with help from Legal Nodes.
What are the new rules on fake reviews?
From April 2025, it is illegal to submit, commission, or host fake reviews under the DMCCA. Businesses must verify reviews and take steps to prevent fakes. Breaches can result in fines of up to 10% of global turnover or £300,000, whichever is higher.
Is drip pricing illegal in the UK?
Yes, from April 2025, drip pricing—showing a low initial price and adding mandatory fees later—is banned. Businesses must display all mandatory charges upfront. The CMA will enforce these rules and can impose substantial fines for breaches. Stay compliant with help from Legal Nodes.
What are the enforcement powers of the CMA?
From April 2025, the CMA can directly investigate and penalize businesses for consumer law breaches, issue enforcement notices, and impose fines up to 10% of global turnover or £300,000. The CMA can also require businesses to change unfair practices without going to court.
Stay compliant with UK consumer laws
