Investigations launched into online pricing practices

The CMA’s decision to open investigations into eight firms across diverse sectors (including ticket resellers, driving schools, gyms, furniture and appliance retailers) marks the first major enforcement action under the Digital Markets, Competition and Consumers Act 2024 (DMCCA). This breadth demonstrates that drip pricing and hidden fees are not isolated practices but systemic issues across the economy. By tackling them head on, the CMA is showing that it is serious about tackling issues such hidden fees and drip pricing that have been allowed to go unchallenged previously. This investigation signals that the CMA is willing to use its new powers under the DMCCA, that opaque pricing is now a compliance risk, and that enforcement will be broad, not confined to one industry. 

Under the DMCCA, the CMA can now directly enforce consumer law without going to court. That means it can: 

• Issue infringement decisions itself.
• Impose substantial fines for breaches. 
• Accept binding commitments from firms to change practices. 

Publish guidance and warnings to deter others. 

This is a step change from the old regime, where the CMA had to rely on court action. Enforcement is now faster, more visible, and more punitive. 

The CMA’s guidance makes clear that businesses must: 

• Show the full price upfront, including all mandatory fees and charges. 
• Avoid drip pricing — no unavoidable costs added later in the journey. 
• Make optional extras genuinely optional, with clear consumer choice. 
• Audit online sales practices for misleading urgency or partitioned pricing. 

In practice, firms should review their digital design and pricing models now, embed compliance into product and marketing teams, and train staff to spot risks. 

The CMA’s investigation is both symbolic and practical. Symbolic, because it demonstrates the CMA intends to use its new DMCCA powers actively and early.  Practical, because hidden fees erode consumer trust at a time when household budgets are stretched. The crackdown sets a precedent: consumer law is now enforceable with the same bite as competition law, and businesses that fail to adapt risk reputational damage as well as financial penalties. For those who embrace transparency, there’s an opportunity to build trust and differentiate positively. At Knights, we have experience in advising clients on how to ensure they stay the right side of the line.   

This announcement from the CMA is timely: as we reach the end of November, Black Friday deals are already hitting our inboxes, and this announcement is a clear warning from the CMA to businesses to ensure that Black Friday promotions are in compliance with consumer law. The CMA also recently authored a blog directed at consumers on how to shop smart during Black Friday, it is clear that consumer protection and compliance during one of the biggest weeks in the retail calendar is a focus for the CMA over coming weeks.