Crackdown on online selling practices: CMA launches eight consumer enforcement cases

Eight companies across four sectors under the microscope

In a widely foreshadowed announcement, the CMA has simultaneously announced its first eight investigations under the new regime.

Consistent with the CMA’s recent focus on online choice architecture, the investigations relate to the companies’ presentation of additional or “dripped” fees, use of time-limited offers and/or automatic opt-ins for optional charges. The CMA considers that these practices may be a form of “pressure selling,” luring customers into making more expensive or quicker purchases than intended.

The relevant sectors and companies under focus span a wide variety of industries:

The CMA will now collect further evidence to decide whether it has reasonable grounds to suspect a breach of the consumer protection rules. The CMA anticipates releasing case updates in March 2026, but there is no legal deadline to make this decision.

Ultimately, the companies risk fines of up to 10% of annual global turnover—a hallmark of the revamped consumer enforcement regime.

Two-tier enforcement puts businesses on notice

In parallel, the CMA has also made use of its “softer” enforcement powers. The authority has written advisory letters to 100 businesses across a whole range of sectors outlining concerns about their use of online sales tactics and drip pricing. These include holidays, live events, parking, gyms and fitness, fashion, cinemas, luggage storage, homeware, food and drink delivery, driving schools, letter and parcel delivery, rail, bus and coach travel, and online vouchers.

Businesses, whether contacted by the CMA or not, are advised to review the CMA’s newly published guidelines on pricing transparency and seeking customers’ consent for additional charges when selling online.

ASA bans hotel and travel firm adverts

The CMA is not the only regulator flexing its consumer enforcement powers. The Advertising Standards Authority (ASA) has upheld complaints against four hotel and travel firms for their misleading use of “from” prices in online adverts. It found that the adverts overstated the deals available, affecting customers’ ability to make informed purchasing decisions.

Businesses are reminded that pricing claims, in adverts and on websites, should be accurate and capable of substantiation.

The CMA and ASA coordinate to determine which body is best placed to take forward consumer protection issues in advertising. As the ASA lacks equivalent direct fining powers, going forward, businesses can expect the CMA to take the lead on high-profile cases or where it feels an industry-wide deterrent is needed.

Key takeaways

1. Multi-layered enforcement puts all businesses on notice. While advisory letters are less immediately intrusive for the businesses involved, they should be taken seriously. Continued non-compliance could lead to formal enforcement action, and the prior receipt of any advisory letter could mean a higher fine.
2. All sectors may face scrutiny, with a particular focus on areas of key consumer spending. In the context of the cost-of-living crisis, price transparency is a key priority for the CMA. Its initial cross-economy review captured over 400 businesses across 19 sectors. We expect the CMA to take a similarly broad approach when reviewing other potentially illegal practices.
3. These are the first CMA consumer protection probes, but they won’t be the last. All consumer-facing businesses, small or large, should make compliance a top priority.