Chapter 1 on protection from unfair trading valid from 6 April 2025

Chapter 1 of Part 4 of the Digital Markets, Competition and Consumers Act 2024, headed Protection from unfair trading, is marked valid from 06/04/2025, with the earlier version of the Part superseded on that date¹. The Chapter states that "Unfair commercial practices are prohibited"¹. It applies only to an act or omission taking place on or after the commencement date¹.

Under the Chapter, a commercial practice is unfair if "it is likely to cause the average consumer to take a transactional decision that the consumer would not have taken otherwise" because it involves a misleading action, a misleading omission, an aggressive practice or a contravention of the requirements of professional diligence, or if it omits material information from an invitation to purchase, or is listed in Schedule 20 as unfair in all circumstances¹. A "consumer" is defined as "an individual acting for purposes that are wholly or mainly outside the individual's business"¹. The "average consumer" is described as reasonably well informed, reasonably observant and reasonably circumspect, and account may be taken of characteristics including age, physical or mental health, credulity and circumstances¹. Products covered include goods, a service and digital content¹.

Enforcement duties sit with every local weights and measures authority in Great Britain for its area, and with the Department for the Economy in Northern Ireland¹. The Competition and Markets Authority "may also enforce the provisions of this Chapter"¹.

Consumers have rights of redress where four conditions are met, including a right to unwind in respect of a relevant contract or consumer payment, a right to a discount, and a right to damages for financial loss, distress or physical inconvenience or discomfort¹. A "prohibited practice" for these purposes means an unfair commercial practice involving a misleading action or an aggressive practice¹. Where a right to unwind applies, the consumer is exempted from any obligation to pay for, or provide other consideration for, the products supplied by the trader¹. In Scotland, proceedings to enforce a right to unwind may be brought before the Sheriff or the Court of Session¹.

A trader commits an offence if, in breach of section 225(1), the trader engages in an unfair commercial practice involving a misleading action within section 226(1)(a), (b) or (c)¹. Penalties are a fine on summary conviction in England and Wales; in Scotland or Northern Ireland a fine not exceeding the statutory maximum; and on conviction on indictment imprisonment for a term not exceeding two years, or a fine, or both¹. Proceedings may be brought within three years of the commission of the offence, or one year from its discovery by the prosecutor¹. A defence is available where the defendant took all reasonable precautions and exercised all due diligence to avoid the offence¹.

The Consumer Protection from Unfair Trading Regulations 2008 are revoked¹. The Chapter also imposes duties on traders in relation to subscription contracts, provides rights for consumers if those duties are breached, and provides rights to cancel subscription contracts during cooling-off periods¹.

Why it matters for households

The prohibitions apply to acts or omissions on or after 6 April 2025, so they cover dealings from that date rather than earlier ones¹. For households, the change means a single statutory framework for consumer protection against misleading, aggressive or otherwise unfair trading, replacing the 2008 regulations¹. Where a practice is a prohibited practice involving a misleading action or an aggressive practice, the redress rights set out in the Chapter, including unwind, discount and damages, become available subject to the four conditions being met¹. Traders face criminal liability for misleading actions, with the penalties and time limits described above¹. The Chapter also covers subscription contracts, including cooling-off cancellation rights¹.

What happens next

The legislation page lists further amendment versions of Part 4 dated 01/01/2026 and 06/04/2026¹. No commencement date for those later provisions is given in the text of the Part as published¹.