CMA says that it will re-consult on drip pricing under DMCC Act
On 10 March 2025, the Competition and Markets Authority (CMA) announced that it would take a slightly amended approach to some aspects of the Digital Markets Competition and Consumers Act (DMCCA) which comes into force on 6 April 2025 (see regulations). In particular, the CMA will:
- Take a phased approach as regards drip pricing, producing finalised guidance as regards clearly unlawful drip pricing by 6 April 2025 and re-consulting on those aspects of the guidance that have created uncertainty (such as pricing for fixed term periodic contracts) in the summer. In the meantime, it will only take enforcement action against the former. More here.
- Focus on supporting business with compliance with the new provisions on fake and misleading consumers reviews (as opposed to enforcement) for the first three months following commencement on 6 April 2025. More here.
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Likely focus early enforcement action using its new powers of direct enforcement (more here) on more egregious breaches of the DMCCA such as (a) providing information to consumers that is objectively false, (b) behaviour where the CMA has already put down a clear marker through its previous enforcement work and (c) practices that the law considers in all circumstances to be unfair.
The CMA also said that it would publish the following by 6 April 2025:
- An approach document setting out its early enforcement priorities (which, in the short term, are likely to be egregious breaches).
- A streamlined and simplified version of the draft unfair commercial practices guidance (CMA207) on which the CMA recently consulted. Some aspects of drip pricing will be carved out of that guidance where the CMA will re-consult.
- Procedural guidance for the direct enforcement model (CMA200) (now published) setting out the processes the CMA will adopt when using the new direct enforcement regime.
Meanwhile, CAP and BCAP have consulted on changes necessary to the Codes to take account of the updated consumer protection regime coming into force under the DMCCA.
For more on what the DMCC Act means for you, see our suite of articles, starting here.
CAP and BCAP consult on HFSS / LHF advertising restrictions
On 18 February 2025, CAP and BCAP initiated a further consultation on the implementation of new restrictions on advertising less healthy food and drink products (LHF) (sometimes called high fat, sugar, and salt products) to children. It follows an initial consultation at the end of 2023.
Part of the reason for the further consultation is to clarify the application of the new law. Previous draft guidance on the new law had suggested that advertising would not fall foul of the new provisions if it did not depict or reference a LHF product. The new consultation makes clear that this might not always be the case. An ad may fall foul of the new provisions if it is for an identifiable LHF product. An LHF product can be identifiable where persons in the UK (or any part of the UK) could reasonably be expected to be able to identify the ad as being for an LHF product. In other words – even when an ad does not explicitly refer to or feature an LHF product – it may still be restricted under law. Revised draft guidance has been issued.
The consultation follows the laying before parliament of the Advertising (Less Healthy Food Definitions & Exemptions) Regulations 2024 on 2 December 2024, which bring the new regime into force on 1 October 2025.
UK government announces online knife sales restrictions
On 19 February 2025, the UK government announced new rules restricting online knife sales named 'Ronan's Law'. Retailers must report bulk or suspicious purchases of knives to the police. Penalties for selling weapons, including prohibited offensive weapons like zombie knives, to under-18s will increase from six months to up to two years in prison. A new offence of possessing an offensive weapon with intent for violence (carrying a maximum sentence of four years) has also been introduced.
New gambling levy and rules take effect
Developments in relation to gambling include the following:
- The Gambling Act 2005 (Operating Licence Conditions) (Amendment) Regulations 2025, which will introduce a £5 online slot limit stake on over-25s from 9 April 2025 and a £2 limit for under-25s from 21 May 2025.
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New rules announced by the Gambling Commission designed to empower consumers and enhance operator transparency. With effect from 31 October 2025, customers must set financial limits before their first deposit, operators must remind customers every six months to review account limits, and operators must actively inform users about unprotected funds during insolvency.
Meanwhile, DCMS and the Gambling Commission announced in early December that they are working together to deliver an appropriate programme of work to evaluate the impact of the policy measures implemented following the review of the Gambling Act.
Government says it won't amend Commercial Agents Regulations
On 13 February 2025, the government announced that it would not replace the Commercial Agents (Council Directive) Regulations 1993 (CARs). While responses to the consultation on the issue (by the previous government) were described as polarised, the government concluded that the CARs work well and are well understood by all parties. In particular, while they can impair the ability of principals to negotiate freely, the government did not find sufficient evidence to suggest this was a big enough issue to require reform.
European Commission publishes Work Programme for 2025
On 11 February 2025, the European Commission published its 2025 Work Programme. Many of the highlighted proposals were also mentioned in the EU Competitiveness Compass and include various simplification omnibus packages to cover elements including digital IDs, a Circular Economy Act to encourage investment in recycling and other waste management proposals, and the next Consumer Agenda 2025-2030 (including public consultations on the European Commission's planned Digital Fairness Act).
ICO launches direct marketing advice generator tool
On 5 February 2025, the ICO launched a direct marketing advice generator tool. It provides free advice about how to carry out direct marketing across a range of methods in compliance with UK data protection law. It is aimed primarily at small organisations and is currently in beta phase.
EC expected to consult on Digital Fairness Act proposals shortly
Public consultations on the European Commission's planned Digital Fairness Act (which will cover unfair commercial practices and other consumer issues) will take place in the next few months. The consultations will look at fairness by design and existing regulatory gaps. A legislative proposal is not expected until early 2026.
EC publishes communication on safe and sustainable e-commerce
The European Commission published a Communication on a comprehensive EU toolbox for safe and sustainable e-commerce on 5 February 2025. This sets out the Commission's approach to addressing challenges posed by e-commerce imports across their lifecycle. The Communication looks at issues around product safety, customs, environmental and consumer protection in the context of the existing legal framework including the DSA and product safety rules, and at what may need to be done going forward. The Commission will assess and report on the highlighted areas and consider whether to propose new measures within one year.
CMA secures undertakings from Google regarding fake reviews
On 24 January 2025, the CMA obtained lengthy undertakings from Google aimed at combating fake and misleading online reviews. Google has given sixty undertakings in total. This comes after the CMA launched an investigation into Google over concerns that it may have been breaching consumer law by failing to take sufficient action to protect people from fake reviews. Key undertakings from Google include:
- To implement rigorous steps to identify and remove fake reviews, ensuring rapid investigation into businesses and reviewers profiting from such activities
- Deleting and banning individuals who repeatedly post fake or misleading reviews for UK businesses, regardless of their location
- Prominent "warning" alerts indicating suspicious activity for businesses found boosting their star ratings via fake reviews
The undertakings mirror much of what is said in the CMA's draft guidance on the new unfair commercial practices regime about fake and misleading reviews. More on new requirements about fake and misleading reviews here.
Business and Trade Committee publishes calls for evidence on variable pricing
On 23 January 2025, the House of Commons Business and Trade Committee issued a call for evidence regarding variable or dynamic pricing practices. This sits alongside work by the Competition and Markets Authority (CMA) on dynamic pricing.
UK government consults on plans concerning ticket touts
On 10 January 2025, the UK government launched consultations proposing measures against ticket touts including:
- Capping resale prices between the original price and up to a 30% uplift.
- Limiting ticket quantities resellers can list.
The consultation closes at 23.59 on 4 April 2025.
ASA publishes further report on age-restricted ads supply pathway
On 12 December 2024, the ASA released the findings of its follow up study into the Online supply pathway of age-restricted ads. As part of its previous monitoring in 2022, the ASA followed up with advertisers where ads (for gambling, alcohol and other age restricted products) were delivered to websites and social media channels disproportionately popular with children. This study looks at the role intermediary companies and platforms may have played in mistargeting the ads.
Through this study, the ASA found relatively few numbers of online ads for alcohol, gambling and other age-restricted ads mistargeted, in breach of the advertising rules, to websites and YouTube channels disproportionately popular with people aged 17 or younger. Where there was mistargeting, it was not assessed to be deliberate or (for the most part) due to a lack of undue care.
Online Advertising Taskforce publishes progress report
The Online Advertising Taskforce (OAT) was set up to bring together government and the advertising sector to work in collaboration to address illegal harms and the protection of children in relation to online advertising.
The OAT was tasked by the previous government with looking at non-legislative action to address illegal harms and protection of children in online advertising. It published an action plan in 2023 but its remit has now been extended for a further year by the current government. As a result, the OAT published a progress report on 2 December 2024 covering work completed to date and its planned initiatives including on the six working groups covering age assurance, gold standard certification for buyers and sellers of digital advertising space, influencer marketing, information sharing, intermediary and platform principles, and research. The report also looks at how to reduce children's exposure to advertising of age-restricted products.
CAP and BCAP publish amended guidance on presentation of mid-contract prices rises in telecoms ads
CAP and BCAP have amended their guidance on the presentation of mid-contract price rises in telecoms ads to align with new rules which came into force on 17 January 2025.
ASA publishes various guidance and a warning
The ASA has published the following:
- Blog on dark patterns – including examples of problematic online choice architecture that can mislead users
