UK CMA Enhances Pricing Transparency Regulations for Consumer Protection

In a significant move towards strengthening consumer rights, the UK's Competition and Markets Authority (CMA) has released a draft guidance aimed at enhancing pricing transparency. This initiative, which was published for consultation on July 15, 2025, follows the enactment of the Digital Markets, Competition and Consumers Act 2024 (DMCC Act), which has notably expanded the CMA's powers in consumer law enforcement, aligning them more closely with competition law.

The draft guidance seeks to provide a structured approach for businesses to comply with new regulations surrounding unfair commercial practices (UCPs), particularly focusing on the critical issue of 'drip pricing.' This pricing strategy, where additional mandatory charges are introduced after an initial price is advertised, has come under scrutiny, with the CMA now mandating that all unavoidable fees—such as delivery and local taxes—be included in the headline price from the outset.

Angelique Bret, a partner at Pinsent Masons and an expert in competition and consumer law, emphasized the importance of this guidance for businesses operating in sectors with complex pricing structures. "Consumer law compliance should now be an important focus for businesses that sell or market to UK consumers," Bret stated. The CMA's new rules aim to eliminate misleading pricing practices that could deceive consumers, particularly in online retail, hospitality, and transport.

The guidance is particularly critical for industries where pricing can be layered or complex, such as online retail and hospitality. Within these sectors, businesses must ensure that all mandatory charges are clearly presented in advertisements, rather than being introduced later in the purchasing process. For example, car rental companies must avoid advertising low base prices that exclude essential fees, while ticket vendors must include all booking and administrative charges in the total price displayed.

Clare Francis, another partner at Pinsent Masons, noted that businesses will need to conduct thorough reviews of their marketing and sales processes to adhere to the new guidelines. "This work needs to be planned and factored in around IT freezes during busy sales periods," she advised. The CMA's draft guidance also outlines how subscription services, which require upfront payments, must present total pricing information transparently to avoid consumer confusion.

To facilitate compliance, the CMA has committed to engaging stakeholders through webinars and workshops, with the consultation period running until September 8, 2025. The finalization of this guidance is expected in the autumn of this year, setting a definitive framework for pricing practices across various sectors.

The implications of these regulations are far-reaching, potentially reshaping how businesses interact with consumers and how pricing information is conveyed. As the digital marketplace continues to evolve, the CMA's efforts to ensure transparency and fairness will be pivotal in protecting consumer rights and fostering trust in the marketplace.