As well as raising the stakes for B2C businesses, the 2024 overhaul of UK consumer law enforcement under the Digital Markets, Competition and Consumers Act (DMCC Act) also allows fines of up to £300,000 to be imposed on certain individuals – including directors and senior managers – based on their involvement in consumer law breaches. We explain what the legislation says and consider when these powers might be exercised in practice.
What does the DMCC Act say about sanctions on individuals?
Individuals who have "consented or connived" in a substantive consumer law breach by a B2C business can now be held personally accountable as "accessories" under the DMCC Act, facing civil fines of up to £300,000 (depending on the nature and seriousness of the breach). Notably this can apply to directors and managers of the relevant B2C business, as well as other related individuals.
When would these powers be exercised?
So far as we are aware, there is currently no guidance from the Competition and Markets Authority on when it might look to impose fines on individuals. However, we would expect the CMA to at least consider using these powers where there has been an egregious breach of consumer law and there was strong evidence that the director or manager either:
- knew that the conduct was very likely to amount to a serious breach; or
- didn't appear to care whether it would breach the law.
That said, how far the CMA will actually use these powers in practice remains to be seen – see discussion below under the heading "What about the pro-growth agenda?".
Rich Offord, Partner, Technology Commercial Transactions
Stephen Whitfield, Head of Competition
Beware of procedural penalties
Individuals can also be fined for procedural breaches in respect of consumer law investigations, such as failure to comply with requirements to provide information to the CMA.
- Up to £30,000 fixed fine or £15,000 daily fines for involvement in breaches of investigatory requirements (with false or misleading information punishable by fixed penalties only)
- Fines of up to £150,000 or maximum daily fines of £15,000 for involvement in breaches of legally binding undertakings, CMA orders or directions
By way of example, based on experience in the competition law and merger control space (see this briefing), the CMA is likely to be particularly concerned about provision of misleading or incomplete information during an investigation.
Depending on the cases that come before the CMA, it's entirely possible that the first sanction to be imposed on an individual manager or director could relate to a procedural breach of this type, rather than their involvement in the conduct which triggered the investigation in the first place.
What about the pro-growth agenda?
Ultimately, how far the CMA will actually make use of its powers to fine individuals remains to be seen. It certainly highlights a tension between aspects of the Government's strategic steer to the CMA earlier this year. On the one hand, the Government has told the CMA that it is expected to make use of its new powers under the DMCC Act, whilst on the other hand it is also exhorting all regulators, including the CMA, to prioritise growth in the economy. The CMA will need to steer a course between highlighting its strengthened powers under the DMCC Act with a view to encouraging compliance, whilst avoiding actions which could have a significant chilling effect on innovation.
How we can help?
Non-compliance with the consumer law provisions of the DMCC Act is not just a business risk—it's also a personal one. We can help you achieve compliance with the legislation in a way that is pragmatic and cost-effective, whilst protecting your business from the significant fines and other penalties available to the CMA as of 6 April 2025 (see this briefing).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
