Unfair Commercial Practices

As of 6 April 2025, the Digital Markets, Competition and Consumers Act 2024 (DMCCA) will be the basis for regulating unfair consumer trading practices, replacing and updating the previous unfair trading practice regulations. 

The Act does not substantially change the types of behaviour that were considered unfair before, but does update the rules to focus more on digital services, as well as clarifying particular unfair practices such as creating fake reviews.  

Businesses will need to familiarise themselves with the new guidance to ensure they are compliant. Particularly given the new financial penalties that can be imposed for breaching the new standard.  

Before this Act came into force, Trading Standards would typically be responsible for enforcing breaches of consumer protections by taking court action.  

For breaches occurring after 6 April 2025, the Competition and Markets Authority (CMA) will be responsible for enforcement and will not have to apply to court to enforce. Instead, they will have the power to decide whether a business has breached consumer laws and issue fines or impose a remedy.  

While the CMA intends to start slowly and ramp up enforcement over time, this is likely to mean that more penalties will be imposed in the future. It is also likely that a more consistent approach to enforcement is taken.  

This guide is intended to help letting agents and landlords understand their obligations and ensure they remain compliant.  

The DMCCA gives the Competition and Markets Authority significant powers around enforcing consumer protection regulations.  

They will be able decide whether an unfair practice has occurred and issue penalties directly without the need to go to court.  

The Act deems a number of commercial practices unfair. Some are unfair in all cases, others are only unfair when it affects a transactional decision of a consumer.