Consumer Law: An Overview

Overview

Consumer law has always been a complex and dynamic area. This year is no different. 2025 saw a significant overhaul of consumer law as the new consumer protection regime in the Digital Markets, Competition and Consumers Act 2024 (DMCCA) took effect. We will soon see the first enforcement action taken under that regime. Consumers are increasingly turning to social media and online marketplaces. Business and regulators must embrace the challenges and opportunities offered by new and emerging technologies, most notably AI. Regulatory divergence between the UK and Europe continues to emerge, creating additional regulatory burdens.

Consumer Protection

The majority of the consumer protection provisions in the DMCCA finally came into force in April 2025. The familiar provisions of the Consumer Protection from Unfair Trading Regulations 2008 have been revoked and replaced by Part 4 of the DMCCA, which is intended to simplify and strengthen existing protections. Certain practices, such as fake reviews and drip pricing, are now banned. The Competition and Markets Authority (CMA) now has powers to take direct enforcement action, including imposing significant fines, against non-compliant traders (up to 10% of a business’s global turnover or £300,000, whichever is greater). Local authorities can now seek fines through the civil courts for breaches of consumer protection legislation. New provisions for subscription contracts will come into force in Spring 2026.

Using its new digital markets powers, the CMA has provisionally designated both Apple (in relation to its mobile platform) and Google (in relation to its activities in search and search advertising and its mobile platform) with Strategic Market Status (SMS) under the DMCCA. In the CMA’s words, the purpose of the CMA’s enforcement power in this area is to improve consumer choice by “promoting competition in fast moving digital markets, while protecting UK consumers and business from unfair or harmful practices by the very largest technology firms”. It has published roadmaps of potential actions it would take to improve competition and consumer choice. A key early priority will be app distribution. Final decisions on designation will be made in October 2025.

The astonishingly rapid advance of AI in recent years has radically changed the way products are marketed to consumers in online marketplaces and social media. This has created new technical and legal challenges for business and regulators alike. Notably, the CMA has provisionally decided that Google’s Gemini AI Assistant is not within the scope of its proposed SMS designations of Google, although it has indicated that the position will be kept under review as usage evolves.

Although not new, dynamic or surge pricing is becoming increasingly common and made the headlines last year (as anyone who tried to get an Oasis ticket will remember). This is an area likely to remain under enhanced regulatory scrutiny in the coming months.

Despite huge financial constraints on regulatory authorities in recent years, complex large-scale trading standards and fraud prosecutions continue to be brought. There have been a number of recent prosecutions brought by National Trading Standards, often working with other national enforcement agencies such as the National Crime Agency and Serious Fraud Office. Local authorities have continued to bring big prosecutions for fraudulent trading, some involving trading over the internet. This is set to continue.

These cases can take years to come to court, and this is unlikely to change given the significant backlogs in the criminal courts. Local authorities have historically been, on the whole, reluctant to use civil enforcement powers to address consumer protection breaches. It remains to be seen whether this will change with the new regime in the DMCCA.

Product Safety

Closely related to consumer protection, product safety is likely to be an increasingly busy area this year. There have been a number of recent local authority prosecutions brought in conjunction with, or with advice from, the Office of Product Safety and Standards (OPSS). This may be, in part, the consequence of a loss of in-house technical expertise due to local authority budget cuts. E-bikes and scooters remain an area of considerable concern and regulatory interest. There continue to be large scale seizures and related prosecutions by Trading Standards in respect of vaping products, and other products that raise safety concerns. Construction products remain of considerable interest to regulators following the Grenfell Tower fire. Further legislative reform is expected in this area following the recommendations of the Grenfell Inquiry.

The Product Regulation and Metrology Act 2025 (PRMA) is now in force. The Act enables the government to amend product safety regulations to address emerging safety issues and technological developments. Regulations concerning how the regime will be enforced have not yet been introduced. In the EU, the General Product Safety Directive was replaced in December 2024 by a new General Product Safety Regulation which is intended to modernise the existing framework to address new challenges created by digital markets. It remains to be seen whether the UK will take a different approach to Europe. One significant potential development, presaged by the PRMA could be new powers for the OPSS similar to the powers of the CMA in the DMCCA in relation to consumer protection.

Food

Despite recent surveys showing improvements in consumer confidence in food safety, this sector has and will continue to be subject to innovation that pushes and tests what is acceptable to the market. The Food Standards Agency (FSA) has launched a public consultation on proposed recommendations to authorise the first cannabidiol (CBD) food products, as novel foods in Great Britain. There may well be more to come but given the complexity of the regulations concerning novel foods, substantial changes to the market might take some time to evolve. For example, despite the Genetic Technology (Precision Breeding) Act 2023 having come into force in 2023, with regulations coming into force at the end of 2025, it is only recently that what is thought to be the first human trial of gene-edited food in the UK has taken place. From November 2025 businesses can start applying for release and marketing authorisations through a two-stage process regulated by both DEFRA and the FSA. Technology is rapidly advancing but consumer confidence, risk and safety will temper the speed of its application to food for the foreseeable future.

Animal welfare in food production is a consistent feature of food law and consumer protection generally. It is well known that consumers place importance on how the food they eat is reared and manufactured, including the treatment of animals in that process, and this continues to play a significant role in consumer preferences and purchasing. Challenges connected to animal welfare are therefore likely to continue. One recent challenge to new laws on how chickens can be handled in poultry production has resulted in permission being given to a judicial review of the government’s approach to the consultation on the legal changes made. There will likely be others in respect of animal welfare generally.

There have been some successful prosecutions for food crime, including notable convictions in cases brought by the FSA’s Food Crime Unit.

Conclusion

These are interesting times for regulators, businesses and those advising them. 2025 has seen significant changes to consumer law with further developments on the horizon. The effect of those changes, however, remains to be seen.