CMA's new powers will change compliance

The impact that the DMCCA will have should not be understated. The direct enforcement powers bestowed on the CMA are game-changing, significantly increasing the level of risk of non-compliance with consumer laws. The risk of GDPR-level fines should bring into focus the need for businesses to review all aspects of their commercial practices to ensure they comply, and that they are doing this on an ongoing basis.

In light of these changes, the CMA has hinted that a collaborative approach will be taken provided businesses are willing to engage and be proactive. It is also planning on operating a three-month grace period in which it will actively seek to work with businesses to promote compliance.

Going forward, we will likely see an increase in investigations, particularly after the end of the three-month grace period. The CMA has been open with its enforcement priorities which follow on from its extensive work on misleading green claims and harms caused by online choice architecture. We might also see further interest in the use of artificial intelligence because of the DMCCA provisions that prohibit unfair competition.

In summary, the DMCCA enhances the CMA's role, urging businesses to prioritise compliance and adapt swiftly.