The Competition and Markets Authority (CMA) has unveiled a new consumer protection regime that will aim to tackle poor corporate practices and improve trust in UK business.

The regime will see the CMA commit to taking early action on more egregious practices in the corporate finance space, including aggressive sales tactics, hidden fees and unfair contract terms.

New consumer protection provisions are now in force under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), giving the CMA the ability to deliver more effective consumer protection.

It means the competition regulator can now decide whether consumer protection laws have been infringed, rather than litigating through the courts, and can tackle any breaches directly and proportionately, including through consumer redress and fines.

Highlighting the importance of “fostering a level playing field” for businesses, the CMA added that its new changes would also give firms more confidence that their competitors cannot gain an advantage by breaking the law.

“Consumers deserve to know that the CMA has their back, and fair-dealing businesses looking to grow and invest deserve to know that their competitors are playing by the same rules,” commented CMA chief executive, Sarah Cardell.

“We will use the new regime to strengthen the trust and confidence of consumers and businesses – supporting economic growth and incentivising good corporate practice.”

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