20/4/2025

UK Competition & Markets Authority (CMA) update: New consumer protection powers for 2025

The Competition and Markets Authority (CMA) in the UK has been granted new powers under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), effective from 6 April 2025. Here UKFT outlines what this means for UK fashion and textile businesses, and the support available for UKFT members around making green claims.The CMA can now directly enforce consumer protection laws without court intervention. This allows the CMA to determine if a business has violated consumer protection laws and take immediate action, including imposing fines and ordering redress. The CMA's information-gathering capabilities have been enhanced, enabling them to obtain information from UK premises, access data from outside the UK, and use "seize and sift" powers at domestic locations. Additionally, the CMA now has stronger authority to compel individuals to attend interviews and provide relevant information for investigations.This new regime focuses on protecting consumers from harmful and unfair practices. The CMA aims to ensure that consumers receive clear and accurate information, helping them make informed decisions and promoting fair competition.What could this mean?Enhanced scrutiny on Green Claims:The CMA is cracking down on "greenwashing" in the fashion industry, where companies make misleading environmental claims. With new powers, the CMA can directly enforce compliance, leading to fines and penalties for businesses that can't substantiate their claims.Stricter compliance requirements:Businesses must ensure their marketing and product descriptions are accurate, especially regarding environmental credentials like recycled or organic materials. The CMA's ability to impose fines means businesses need to review and update their marketing practices, supply chain transparency, and sustainability claims.Misleading price discounts:The CMA is tackling misleading price discounts, ensuring promotional prices are genuine and not artificially inflated.Drip pricing:The CMA enforces transparency in pricing to prevent hidden costs during the purchasing process, ensuring consumers are aware of the total cost upfront.Fabricated online reviews:The CMA addresses fake reviews that mislead consumers, acting against businesses that post or incentivise false reviews.Unilateral changes to Terms and Conditions:The CMA can act against businesses that make unfair changes to terms and conditions without proper notice or consent.Consumer redress:The CMA can compel businesses to offer redress, such as refunds, replacements, or other compensation, to consumers harmed by unfair practices.Support for UKFT membersUKFT can provide further guidance on green claims for members. Issue 2 of ourSustainability 101 seriesalso focuses on green claims, providing insights for UK fashion and textile manufacturers on making accurate and reliable statements about their sustainability practices. Webinars are also available on demand including:The Sustainable Fashion Communication Playbook Masterclass: Shifting the narrative on Green Claims. With the UN Environment ProgrammeHow to avoid greenwashing in fashion, with the CMA and Fox WilliamsContactinfo@ukft.orgfor more details.Not yet a member?Click hereto find out more about the UKFT membership.

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