UK's 2024 Act boosts digital market, competition, and consumer rights

On 6 April 2025, new, directly enforceable consumer protection laws came into force under the widely anticipated Digital Markets, Competition and Consumers Act 2024 (the "DMCC").  This marks a fundamental shift in the UK's consumer protection regime and follows the CMA's publication of its Guidance on Direct Consumer Enforcement on 14 March 2025.

The DMCC introduces significant reforms to consumer laws in the UK and grants the CMA new powers to directly enforce consumer legislation through administrative proceedings.  This brings the CMA's consumer law enforcement powers in line with its current competition law powers. 

This is especially important for businesses in considering their environmental and green claims.  Particularly, taking into account the CMA's interest in greenwashing, as set out in its guidance, including its Green Claims Code, and its high-impact greenwashing investigations into a number of fashion brands.   

The CMA's direct enforcement powers

Under the DMCC, where the CMA concludes there has been a breach of the legislation it will, for the first time, be able to impose significant financial penalties of up to 10% of a company's global turnover and up to £300,000 on individuals. 

Likely target areas for the CMA

The CMA will continue to focus on sectors and activities with an obvious consumer impact.  As set out above, in relation to greenwashing this has included a number of fashion brands. However, we also anticipate the financial sector might come under scrutiny.

Impact for businesses

Whilst the CMA is keen to actively engage with business and foster an open dialogue, it is important for businesses to be aware of the changes introduced by the DMCC and take steps to ensure compliance, including updating compliance policies and procedures to reflect any necessary changes.  It's a reminder for businesses to be particularly careful around their green or environmental claims.

Given the likelihood that the CMA will begin to make use of its enforcement powers over the next year, this could also increase the risk of follow-on litigation for businesses following an adverse CMA decision.  Given the opt-out collective action regime will not apply to consumer law claims, we are likely to see consumer law arguments dressed as competition law claims further down the line.

If you would like to find out more, do read our recent article UK watchdog's greenwashing rulings show ongoing scrutiny of eco claims | Simmons & Simmons or please get in touch.