CMA launches major crackdown on hidden online fees in first test of new consumer law

Key insights:

• The CMA has launched its largest consumer enforcement drive in years, using new DMCCA powers to challenge hidden fees, misleading countdown timers, and pressure-led digital design across the UK economy.
• Eight major brands including StubHub, viagogo, AA, BSM, Gold’s Gym, Wayfair, Appliances Direct, and Marks Electrical are now under investigation, with 100 more firms warned to review their pricing.
• CEO Sarah Cardell called the intervention “an important milestone,” saying customers “deserve a fair deal” and should always know what they’re paying upfront.

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The UK’s Competition and Markets Authority (CMA) has launched its most significant consumer enforcement drive in years, initiating a suite of actions aimed at cleaning up online pricing practices across the economy.

It marks the first major use of the CMA’s powers under the Digital Markets, Competition and Consumers Act (DMCCA), which came into force earlier this year and gives the regulator the authority to directly fine companies and order compensation without going through the courts.

Announced on 18 November, the crackdown includes investigations into StubHub, viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical. A further 100 firms across 14 sectors have been sent advisory letters requiring them to review how they present prices and sales promotions to customers.

In a post shared on LinkedIn, Sarah Cardell, CEO of the CMA, framed the move as a watershed moment for consumer protection, writing that “people across the UK deserve a fair deal” and should always “know what they’re paying upfront.” She continued: “The CMA’s job is to protect you from misleading pricing and illegal pressure selling.”

The digital marketplace now under scrutiny

At first glance, this may appear to be the latest in a long line of regulatory examinations of online behavior, but the scale and scope of the CMA’s actions represent something new. Since April, the regulator has carried out an extensive cross-economy review covering more than 400 businesses in 19 sectors. The findings revealed widespread use of drip pricing, where mandatory fees appear  only late in the checkout process – as well as misleading countdown timers and default opt-ins for additional services.

These practices impact everything from gym memberships and homeware purchases to travel, leisure, and event tickets. For customer experience (CX) leaders, that means scrutinizing the entire purchase journey, from the headline price displayed on product pages to the final click at checkout.

The CMA said it has identified potential issues in 14 sectors, and while not all are the subject of formal investigation, all have been warned that change is expected. Cardell noted that the intervention is designed to protect not only customers but also “fair dealing businesses” that risk being undercut by rivals using these misleading tactics.

Eight companies under investigation

In its first wave of enforcement, the CMA has turned its attention to companies whose practices appear to be out of step with the new rules.

Ticketing platforms StubHub and viagogo are being scrutinized over their use of mandatory additional charges, including whether these are included in upfront pricing or revealed only at the final stages of purchase.

Driving schools AA and BSM also face questions over how they display compulsory fees within their booking flows.

At Gold’s Gym, investigators are assessing whether their one-off joining fee is adequately disclosed, or introduced partway through the sign-up process.

Homeware retailers Wayfair, Appliances Direct, and Marks Electrical are facing queries over whether time-limited promotions genuinely end when stated, and whether optional add-ons such as installation or insurance are pre-selected for customers by default.

The CMA stresses that no conclusions have yet been reached, but under the DMCCA, a confirmed breach could result in fines of up to 10 percent of a company’s global turnover. This is a penalty large enough to transform how online firms approach pricing architecture.

“This marks an important milestone”

Cardel emphasized that enforcement is just one part of the strategy. As well as launching investigations, the CMA has published new pricing transparency guidance intended to help businesses align their practices with the updated law. Also, the 100 advisory letters represent the largest single compliance intervention the regulator has ever issued.

In her statement, Cardell wrote:

“This marks an important milestone as we take action across the economy to make sure businesses do the right thing by their customers. Since the launch of the new regime, we’ve been working hard to help businesses understand the law.”

However, she also made it clear that patience has limits:

“We’ve always been clear that we will take swift action where we suspect potentially serious breaches of the law. This is just the start of our work… any businesses who break consumer law should be in no doubt we will stamp out illegal conduct and protect the interests of consumers and fair-dealing businesses.”

What does this mean for CX?

The implications of this crackdown extend far beyond legal compliance. Online choice architecture – the way digital journeys are designed to influence purchasing behavior – has become central to CX strategy. The CMA’s focus on transparency places new pressures on ecommerce leaders, UX designers, product teams, and marketers.

For many businesses, default opt-ins and urgency messaging have been long tools to nudge customers through checkout. Now, these tools carry regulatory risk.

A defining moment for ecommerce

The DMCCA represents the most significant overhaul of UK consumer law in a decade, and the CMA's early actions suggest it intends to use its new powers decisively, with eight companies already under investigation and 100 more under scrutiny, this represents a turning point in how online businesses must operate.

As the investigations unfold, businesses across all digital sectors will be watching closely not just for the outcomes, but for the new standards this enforcement wave will set. For consumers, it promises a future in which price transparency is not an optional feature of the online experience, but a legal requirement.

As Cardell put it, the regulator’s work has only just begun.

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