CMA fines £4.7 million and orders refunds in first year of direct consumer enforcement
The Competition and Markets Authority opened investigations into 14 businesses and focused enforcement on drip pricing, fake reviews and online choice architecture under powers granted by the Digital Markets, Competition and Consumers Act 2024.
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The CMA enforced consumer protection law directly for the first time in its history after launching its direct enforcement regime under the Digital Markets, Competition and Consumers Act 2024 in April 2025. Between April 2025 and April 2026, the regulator ordered refunds of £760,000 to consumers and imposed fines totalling £4.7 million across cases targeting drip pricing, fake reviews, and online choice architecture.
Refunds and penalties from drip pricing investigations
Drip pricing—revealing fees only at the final stage of a transaction—accounted for the largest financial penalty. The AA was fined £4.2 million for the practice, while the AA Driving School and BSM Driving School agreed to refund over £760,000 to affected learner drivers. Both the penalty and the refunds stem from charges revealed only during checkout rather than upfront.
Advisory approach to fake reviews
The CMA issued advisory letters to 54 review publishers on compliance with laws against fake reviews. Of those 54 businesses, 90% took action to improve their policies after receiving the letters. The CMA also opened investigations into 5 companies in March 2026 to establish whether consumer laws on misleading reviews had been broken, signalling enforcement beyond the advisory stage for the most serious breaches.
Current investigations and coming regulation
From April 2025 to April 2026, the CMA opened investigations into 14 businesses total and settled with 2. One active investigation targets Adobe over whether its early cancellation fees are unfair and misleading. The CMA sent 46 information notices during the period to gather evidence from businesses.
New subscription contract rules are expected to come into force in Spring 2027 with guidance from the Department for Business and Trade. The CMA plans to finalise updated guidance on unfair terms in consumer contracts by Autumn 2026 at the latest. The regulator published 10 pieces of guidance on topics including price transparency and unfair terms during the first year. Over 2,000 attendees attended CMA events and seminars during the enforcement year.