Legal briefing | 24 Nov 2025 |

How should B2C businesses respond to the CMA's enforcement action on misleading pricing?

The UK Competition and Markets Authority has launched its first consumer investigations using the tough new enforcement powers it acquired in April 2025 – which include the ability to impose fines of up to 10% of turnover. We look at why it's chosen to focus on pricing and what B2C businesses can do to reduce their risk of being next on the CMA's "hit list".

What has the CMA done?

The CMA has opened investigations into the pricing practices of 8 businesses in a range of sectors, from ticket sellers through to driving schools and retailers. Alongside this, it has written to 100 businesses in 14 sectors asking them to review their pricing practices. The investigations are the first to be conducted under the tough new consumer enforcement regime in the Digital Markets, Competition and Consumers Act 2024.

What is the CMA concerned about and why?

The 8 investigations relate to allegations that the businesses are engaging in the following practices that the CMA regards as misleading:

Adding extra, unavoidable charges at checkout (such as joining or administration fees), causing the total price to be higher than indicated at the start of the purchase process or in promotional material;
Automatically opting consumers into the purchase of additional services; and
Continuing with time limited sales beyond the time when they were originally stated to end.

The CMA's underlying concern in relation to the first two bullets is that these practices lead to consumers paying more than they may have been led to expect by the "headline price" used by the business to promote the relevant product or services. In particular, the CMA's view is that consumers typically only find out about this late in the purchase process, by which time they are less likely to seek out alternative, potentially cheaper offerings. The concern about time limited sales is similar i.e. consumers who are misled into thinking that the offer ends soon may be encouraged to make a hasty purchasing decision and may be less likely to take the time to shop around and compare offers.

But one of the key changes introduced by the 2024 Act is that the CMA doesn't need to prove that these practices actually had this effect on consumers – it only needs to prove that the pricing was misleading. This makes it significantly easier for the CMA to enforce.

Are there other pricing practices the CMA may be concerned about?

The CMA has recently published final guidance on pricing which outlines a range of other practices it considers to be misleading. A key element of that guidance – which we discussed in July, when commenting on the draft version - is the CMA's insistence that any mandatory (unavoidable) charges are included in the upfront, "headline" price which is displayed to consumers both at the outset of their online "purchase journey" and in wider promotional material (beyond the e-commerce website where consumers make their purchases). Charges which may be regarded as mandatory include delivery charges, booking or admin fees, local taxes, joining fees and other sums that may make up the total price for a product or service.

Over the next 12-18 months, we would expect the CMA to follow up on its initial intervention in this area – for example, by taking enforcement action against recipients of advisory letters which fail to address its concerns and by issuing further advisory letters to a wider range of businesses.

What can B2C businesses do to reduce their risk?

E-commerce website: we strongly recommend that businesses review their online consumer "purchase journey" for compliance with the rules on unfair and misleading pricing, as it is quite clear that the CMA has this area in its sights.
Wider promotional material: Alongside that, wider promotional material should be reviewed to ensure that e.g. advertising focussing on price is not making use of "headline" prices that the CMA would regard as misleading.
Staff awareness: Consideration should also be given to staff awareness training – if those in marketing roles don't understand these rules and how they apply to businesses in practice, there is a significant risk that future promotional activity may be non-compliant.

How we can help

This a difficult area where there is limited prior case law. However, we have extensive experience in advising on CMA processes and formal investigations and recognise the need to adopt a pragmatic approach, focussing on the highest areas of risk whilst ensuring that you are still able to achieve your commercial objectives. When it comes to reviewing your current practices for compliance, we can also help you work out:

which areas of your pricing are likely to be regarded as mandatory and may therefore need to be included in the upfront price; and
which aspects of your wider promotional activity may be regarded as "invitations to purchase" (and thus caught by the pricing provisions of the 2024 Act)

Last but not least, we have extensive experience of providing engaging and effective training to staff.

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