Competition authorities have gained new powers to tackle "sneaky hidden fees" and fake reviews as landmark consumer protection provisions come into force this week.

The Competition and Markets Authority (CMA) can now directly enforce consumer protection laws without going through the courts, under reforms in the Digital Markets, Competition and Consumers Act 2024 (DMCCA).

The new regime bans "drip pricing" - where businesses show an initial price for a product but add mandatory fees as customers proceed through the purchase process. Businesses must now include unavoidable charges in their headline prices.

Sarah Cardell, chief executive officer of the CMA, said: "Consumers deserve to know that the CMA has their back; and fair-dealing businesses looking to grow and invest deserve to know that their competitors are playing by the same rules."

The CMA has committed to focusing early action on "more egregious practices" including aggressive sales tactics, hidden fees and unfair contract terms.

The legislation also explicitly bans posting and commissioning fake reviews, with website hosts to be held accountable for reviews published on their platforms. Research shows 90 per cent of consumers use reviews in their buying decisions.

Justin Madders, minister for employment rights, competition and markets, said: "These measures mean consumers can confidently make purchases knowing they are protected against fake reviews and dripped pricing."

"These changes will give consumers more power and control over their hard-earned cash, as well as help to establish a level playing field by deterring bad actors that undercut compliant businesses," he added.

The CMA can now fine companies up to 10 per cent of their global turnover for infringing consumer protection law, though it has indicated that any fines in the first 12 months are likely to be lower than in future years.

Businesses are being supported with guidance to help them comply with the new rules. The CMA has published an "Approach to Consumer Protection" document outlining likely priority areas for enforcement and how businesses can expect the regulations to be implemented.

The authority has committed to a "proportionate approach" focused on minimising compliance burdens while ensuring customers benefit.

The DMCCA replaces and updates the Consumer Protection from Unfair Trading Regulations 2008. The CMA says it will emphasise the importance of fostering a level playing field for fair-dealing businesses so they can "grow and invest, confident that competitors cannot gain an advantage by breaking the law."

For further information, businesses can report concerns about companies' behaviour directly to the CMA online through the "Report a competition or market problem" form.

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