CMA's DMCC Act Powers Explained: What UK Small Businesses Must Know in 2026

Published: March 2026 | Author: ComplianceAlert Target keywords: CMA DMCC Act SMB, CMA fake reviews fine, DMCC Act small business, UK compliance fines 2026 Word count: ~650

---

The Competition and Markets Authority just made history.

On 27 March 2026, the CMA opened a formal investigation into Feefo Holdings Limited — the first enforcement action under the Digital Markets, Competition and Consumers Act 2024 targeting the UK's consumer review market. If you run a small or medium-sized business in the UK, here's why you should stop and read this.

What Is the DMCC Act?

The Digital Markets, Competition and Consumers Act 2024 (DMCC Act) came into force in 2025 and hands the CMA sweeping new powers to regulate consumer-facing businesses of all sizes — not just tech giants.

Before DMCC, if the CMA found a business breaking consumer protection law, they had to go to court. That process was slow, expensive, and largely reserved for major cases.

Not anymore.

Under the DMCC Act, the CMA can now:

• Issue fines of up to 10% of global annual turnover — directly, without a court order
• Open investigations into any business suspected of "unfair commercial practices"
• Require businesses to hand over documents, data and staff testimony

For a business turning over £200,000 per year, a 10% fine is £20,000. For a £500,000 turnover SMB, it's £50,000. Without warning. Without a judge.

What Triggered the Feefo Investigation?

The CMA is investigating whether Feefo facilitated unfair practices around consumer reviews — specifically whether the platform allowed businesses to filter out negative reviews or present testimonials in a misleading way.

This directly affects any UK business using Feefo, or any review platform that allows selective display of customer feedback.

What Practices Are Now Illegal Under DMCC?

The Act creates a clear list of prohibited commercial practices relevant to everyday SMB activity:

Reviews and testimonials:

• Filtering which reviews customers can see (e.g. showing only 4-5 star reviews publicly)
• Using "verified purchase" or "verified review" badges without genuine verification
• Offering incentives for positive reviews without clear disclosure
• Commissioning fake reviews

Green claims:

• Using "eco-friendly", "sustainable", "carbon neutral" or similar language without substantiating evidence
• Vague environmental claims that can't be backed up

Subscriptions and cancellations:

• Making it harder to cancel than to sign up
• Auto-renewal without clear pre-renewal notice
• Hiding cancellation mechanisms

General misleading practices:

• False urgency ("Only 2 left!" when stock is ample)
• Hidden charges disclosed only at checkout
• Drip pricing in any consumer-facing context

Who's At Risk?

The honest answer: almost every UK SMB with an online presence.

If your business has a Google My Business page, a Trustpilot profile, a website testimonials section, or uses any third-party review platform — you need to understand how you're presenting that content.

Sectors under heaviest CMA scrutiny in 2026:

• E-commerce and online retail
• Hospitality (restaurants, hotels, pubs)
• Beauty and wellness
• Professional services
• Any sector making environmental claims

What Should You Do Right Now?

1. Audit your review setup. Check whether your review platform (Feefo, Trustpilot, Google, Yelp) has any filtering settings active. If it does, understand whether that filtering is compliant.

2. Review your green claims. If your website says "sustainable", "eco" or "carbon neutral" anywhere — ensure you have documented evidence to back that claim.

3. Check your subscription terms. If you sell subscriptions, make cancellation as frictionless as sign-up. Add a clear cancellation mechanism to your account area and terms.

4. Document your review practices. If you ask customers for reviews, ensure your process doesn't steer them toward positive-only responses.

The Bigger Picture: CMA Has a Full Enforcement Programme for 2026

The Feefo investigation isn't an isolated event. The CMA has announced that consumer enforcement is a priority for 2026, with particular focus on:

• Fake and manipulated reviews (all sectors)
• Drip pricing in hospitality and travel
• Subscription traps
• Greenwashing

UK businesses that assumed "compliance" was just about employment law and GDPR are about to discover the CMA is actively watching their marketing practices too.

---

ComplianceAlert monitors the CMA alongside 9 other UK regulators — including the ICO, HSE, HMRC and FCA. When an enforcement action, guidance update or new fine is published, we send you a plain-English alert explaining what changed and what you need to do.

£19/month. No contract. Cancel anytime.

Start your free trial → compliancealert.co.uk

---

Sources: CMA investigation notice, 27 March 2026. Digital Markets, Competition and Consumers Act 2024. CMA Annual Plan 2026.