The CMA means business: three fines and counting under the DMCCA

Just over a year after the Competition and Markets Authority (CMA) acquired its landmark direct consumer enforcement powers under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), the regulator has wasted little time putting them to use. Since the new regime came into force on 6 April 2025, the CMA has issued financial penalties against Automobile Association Developments Limited (AA), Marks Electrical Limited and StubHub UK, signalling that direct enforcement is already becoming a central feature of the UK’s consumer protection landscape.

The speed of these early cases reflects the purpose behind the reforms. The DMCCA was introduced in response to concerns that consumer law enforcement was often slow and cumbersome, requiring the CMA to pursue businesses through the courts before obtaining enforcement orders. The new regime allows the CMA to investigate suspected breaches, determine infringements and impose significant financial penalties directly, enabling faster outcomes for both consumers and businesses. The regulator’s early enforcement activity suggests it intends to make full use of those powers.

AA fine

Launching its investigation into pricing transparency in November 2025, the CMA found that AA were engaging in drip pricing. This is a practice whereby a business advertises an initial price, yet ‘drips’ mandatory charges into the transaction at a later stage, ultimately misleading customers about the true cost of a product or service. The CMA found that when customers went to book diving lessons, a mandatory £3 booking fee did not appear until the end of the customer journey, after a lesson time had been chosen and the customer’s details had been entered.

The AA was fined a hefty £7 million, reduced to £4.2 million after admitting fault. It was also required to refund £760,000 to more than 80,000 customers. The investigation lasted just under five months.

Marks Electrical fine

The next fine handed out by the CMA was to Marks Electrical, which was penalised for using pre-ticked optional extras. This automatically opted customers into paid add-on services, such as appliance recycling and packaging removal. The CMA was loud and clear: if a customer has not actively chosen a service, they must not be charged for it.

Marks Electrical received a £1.2 million fine, reduced to £720,000 after settlement, and was required to refund approximately £600,000 to nearly 40,000 customers.

StubHub UK fine

Like the AA, StubHub was fined for drip pricing after failing to include mandatory fees in the ticket prices shown to consumers at the start of the purchasing process. Instead, these charges only appeared later in the customer journey, meaning consumers were not shown the true cost upfront. Originally fined £1.4 million, the penalty was reduced to £890,000 following settlement, and StubHub was also required to refund more than £590,000 to around 50,000 customers.

Larger fines on horizon

The penalties imposed so far should not be viewed as the upper limit of the CMA’s new enforcement powers. While the headline figures are significant, each of the CMA’s first three cases concerned relatively short infringement periods following the introduction of the DMCCA regime on 6 April 2025.

In the Marks Electrical decision, the CMA noted that penalties could only be imposed for conduct occurring after the new regime came into force, meaning the infringement period was limited to just over seven months. Similar constraints applied in the AA and StubHub investigations.

As the regime matures, those limitations will disappear. The CMA will be able to investigate longer-running practices affecting far larger numbers of consumers, while businesses will find it increasingly difficult to argue uncertainty around the new rules.

With the power to impose penalties of up to 10% of worldwide turnover, the CMA is capable of issuing substantially larger fines than those seen to date. For businesses, the message is clear: the first wave of decisions is unlikely to represent the high-water mark of the CMA’s direct enforcement regime. Instead, it is likely to be the starting point.

Takeaways for businesses

1. Be transparent on price. Consumers should be shown the total price, including any mandatory charges, from the outset.
2. Review fees carefully. If a charge is unavoidable, it is likely to need to be included in the headline price.
3. Document compliance decisions. Keep records explaining how charges have been categorised and why any fee is considered optional.
4. Audit customer journeys regularly. Review websites, apps and checkout processes to identify potential consumer law risks before the CMA does

With the CMA showing a clear willingness to use its new direct enforcement powers, businesses should be proactive in assessing their compliance with consumer protection law. If you would like advice on pricing transparency, online sales practices, customer journeys or the wider implications of the DMCCA, please get in touch with a member of our Commercial Team.