As of 6 April 2025, by virtue of the Digital Markets, Competition and Consumers Act, the Competition & Markets Authority (CMA) is officially the only regulated body in the UK with the power to enforce consumer protection law without the need for court approval or intervention. This marks a significant shift in the influencer regulatory landscape.
The Digital Markets, Competition and Consumers Act (DMCC) repeals and reinstates the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) with some changes, including amended definitions of “average consumer”, “commercial practice” and “transactional decision” – with the objective being to enhance the protection for consumers.
Enhanced powers
The DMCC grants the CMA greater authority to investigate and penalise agencies, influencers and brands that engage in banned practices – including mislabelling or non-disclosure of ad content.
Banned practiced bolstered
The list of banned practices has increased and, in some places, expanded, including some practices which are always considered unfair, regardless of the circumstances.
Streamlined processes
The Act introduces streamlined processes for the CMA to undertake investigations and enforcement. This should, in theory, lead to quicker resolutions in the influencer marketing sector.
Flexibility
The secretary of state now has the power to amend the list of practices always considered unfair. This should enable a level of flexibility and adaptability to respond to marketplace changes and requirements. Banned practices are strict liability offences so this ability to add to the list is a significant power.
Fines
Companies and traders found to be in breach of the applicable laws and regulations can face significant fines – not too dissimilar to the GDPR style fine scaling. The most significant fine being £300,000 or 10% of annual global turnover (whichever is higher) and this is in relation to final infringement notices. The lowest of the fines starts at £30,000 or 1% of annual global turnover (whichever is higher) plus an additional daily penalty if the breach continues of up to £15,000 or 5% of daily global turnover (whichever is higher) for non-compliance with an information notice or for the provision of materially false or misleading information. There is an additional middle range for non-compliance with an enforcement direction or a breach of undertaking.
In a nutshell, the DMCC should make it a whole lot easier for the CMA to regulate the influencer marketing industry. The CMA is currently in its bedding in period, focusing on supporting compliance as opposed to proactive enforcement. The bedding in period is due to come to an end on 6 July 2025 – it will be interesting to see whether the CMA takes any enforcement action in the influencer industry this year.
Now is the opportunity to ensure compliance with the CMA requirements – whether you are an influencer, agency or a brand – you have equal responsibility for compliance. Our expert legal advisors in our Intellectual Property and Data Protection team can help you prepare and protect your business in light of this increased risk.