CMA turns up the heat: A price war on hidden fees
The UK’s Competition and Markets Authority (CMA) has fired the opening salvo in its new era of consumer protection enforcement, and it is targeting the tricks behind the clicks. Using powers granted by the Digital Markets, Competition and Consumers Act 2024 (DMCCA), the regulator has launched investigations into eight companies over allegedly misleading online pricing practices.
This marks the CMA’s first major enforcement action under its strengthened toolkit; a clear signal to businesses that the rules of the game have changed.
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The companies under scrutiny span diverse sectors: ticketing giants, driving schools, fitness providers, and homeware retailers. The CMA’s concerns centre on practices such as:
- Drip pricing: advertising a low headline price, only to reveal mandatory fees later in the checkout process.
- Pressure selling: using countdown timers or “limited time” offers to rush consumers into purchases.
- Pre-selected add-ons: automatically opting customers into extra services without clear consent.
These tactics, the CMA argues, undermine transparency and consumer trust – especially at a time when household budgets are under strain.
Why this matters
The CMA’s review, which began in April, assessed pricing practices across more than 400 businesses and identified potential compliance issues in 14 sectors, from travel and fitness to homeware and entertainment. In addition to the eight formal investigations, the regulator has written to 100 other businesses warning them that they may need to clean up their practices.
What makes this crackdown particularly significant is the CMA’s new enforcement muscle. Under the DMCCA, the watchdog can decide for itself whether consumer law has been breached, bypassing often lengthy court proceedings. For consumers, this is about trust: the price you click should be the price you pay. For businesses, it is a compliance wake-up call.
Penalties can be severe: fines of up to 10% of global turnover and orders to compensate affected customers.
What next?
The CMA has not yet concluded whether any breaches occurred, and the named businesses will have the opportunity to respond. But the message is clear: online pricing practices are under the microscope, and enforcement will be swift where violations are found. The CMA has promised guidance – but enforcement may speak louder than words.
Will the DMCCA herald a new era of aggressive consumer enforcement? Or will businesses adapt quickly to avoid the CMA’s bite? Watch this space – or get in touch.
