Unfair Commercial Practices: Guidance for Businesses

The Competition and Markets Authority (CMA) has issued guidance titled “Unfair Commercial Practices: CMA207,” which elucidates the provisions of the Digital Markets, Competition and Consumers Act 2024 (DMCC Act) concerning unfair business-to-consumer practices.

Scope and Application

The guidance applies to traders – defined as individuals or entities conducting activities related to their business – and their commercial practices that could influence consumer decisions. This encompasses actions such as supplying products, promoting another trader’s products, purchasing from consumers, or facilitating consumer-to-consumer sales.

Prohibited Unfair Practices

The DMCC Act identifies specific unfair commercial practices, including:​

• Misleading Actions and Omissions: Providing false information or omitting crucial details that could affect consumer decisions.​
• Aggressive Practices: Employing harassment, coercion, or undue influence to pressure consumers.
• Banned Practices: A list of 32 practices deemed unfair in all circumstances, such as fake reviews, misuse of trust marks, and pressure selling. ​

Implementation Date: These provisions are effective from 6 April 2025, replacing the previous Consumer Protection from Unfair Trading Regulations 2008. ​

Additional Resources

To assist businesses in compliance, the CMA has provided:​

• Illustrative Examples: Real-world scenarios demonstrating how various unfair practices may violate consumer protection laws. ​
• Specific Guidance on Fake Reviews: Detailed information addressing the prohibition of fake consumer reviews. ​
• Short Guide for Small Traders: A concise overview tailored for small businesses outlining key compliance points. ​

This guidance aims to foster fair trading practices and protect consumers from deceptive or coercive business behaviours.

Please find the Guidance in the buttons at the bottom of the page.

What businesses need to know about unfair commercial practices

The Competition and Markets Authority (CMA) has published a concise guide titled “What Businesses Need to Know About Unfair Commercial Practices,” aimed at assisting businesses and traders in understanding their obligations under the Digital Markets, Competition and Consumers Act 2024 (DMCC Act).  It is a guide to how businesses and traders must treat consumers fairly, under the Digital Markets, Competition and Consumers Act, offering businesses a clear overview of their responsibilities to ensure fair treatment of consumers. It is particularly beneficial for:​

• Business owners or operators (‘traders’) who sell products, services, or digital content to consumers.​
• Individuals selling goods online for profit.
• Legal professionals advising businesses.​

Key Points Highlighted

• Compliance Requirements: Traders must act fairly and diligently in their consumer dealings, avoiding misleading actions, omissions, or aggressive behaviours.​
• Consequences of Non-Compliance: Failure to adhere to the DMCC Act can result in enforcement actions, including fines up to 10% of worldwide turnover and potential compensation to affected consumers.​
• Effective Date: The provisions come into force on 6 April 2025.​
• Banned Practices: The guide outlines 32 specific commercial practices that are prohibited in all circumstances, such as fake reviews, misuse of trust marks, and pressure selling.​

For a more detailed understanding, businesses are encouraged to consult the full “Unfair Commercial Practices: CMA207” guidance (found at the bottom of this page) and the specific guidance on managing and preventing fake reviews.

Author of Guidance: ASSC
Date of Guidance: April 2025
Version Number: V1

Disclaimer – Guidance Sheets are written by experienced Members of the ASSC and other experts. The information in the ‘Guidance Sheet’ is provided by the ASSC for use by Members in support of their own independent business decisions. It does not constitute advice or instruction for which the ASSC can be held liable in any way whatsoever. All Members and other readers remain responsible for the consequences of any decisions taken whether in the light of information gained from this Guidance Sheet or not.