Regulatory
SRA warning on solicitors' misuse of AI
The Solicitors Regulatory Authority (SRA) has issued a warning to all solicitors, including those working in-house, about the risks of improving AI usage and how the use of AI tools does not reduce their personal, legal or professional accountability. Our article, AI and in-house legal practice: professional judgement cannot be automated reflects on the issues raised and the practical steps in-house teams can implement to mitigate these risks.
Consumer law
DMCCA subscription contract reforms brought forward
The government has accelerated implementation of the new subscription contract regime under the Digital Markets, Competition and Consumers Act 2024 (DMCCA). The reforms, originally expected in spring 2027, will now come into force in January 2027.
The new rules will introduce significant changes to the way businesses offer, renew and terminate subscription contracts, including enhanced reminder requirements and new consumer cancellation rights. Organisations operating subscription-based models should ensure preparations are well underway.
See our autumn 2026 UK consumer law update for a closer look at the changes and other recent developments.
Privilege
SRA cannot compel production of privileged client material
The High Court has held that the SRA cannot require a solicitor to produce documents protected by a client’s unwaived legal professional privilege.
The court rejected the SRA’s argument that the power arose by necessary implication. Privilege is a fundamental right which can be overridden only by express wording or an implication which is “compellingly clear”. Section 44B of the Solicitors Act 1974 did neither. Safeguards governing the SRA’s later use of the documents could not create a power to obtain them in the first place.
The practical position and key takeaway is that privilege belongs to the client. Where it is properly arguable, the solicitor must assert it on the client’s behalf, even if the client’s refusal to waive makes a regulatory investigation more difficult. The usual limits, including the iniquity exception, remain.
For further details of the implications of the ruling, see our article on the case here: High Court limits SRA power to obtain client material.
Late payment reform
Commercial Payments Bill published
The government has published the Commercial Payments Bill, providing further detail on its proposed overhaul of the UK's late payment regime. For a summary of what the proposals might mean to your organisation, please see our article: Commercial Payments Bill: a practical guide.
Right to Work checks
Right to Work checks: changes from 1 October 2026
The proposed Right to Work reforms, taking effect on 1 October 2026, represent a significant expansion of the UK's illegal working regime beyond traditional employment relationships. The reforms reflect an increasing focus on how organisations engage individuals across their workforce, greater scrutiny of supply chains and ongoing identity verification. In-house teams should ensure that responsibilities for right to work compliance are clearly allocated, that appropriate contractual protections and audit rights are in place, and that agency, contractor and outsourcing arrangements are reviewed ahead of the changes.
Our article, Right to Work reforms from 1 October 2026: what do UK organisations need to know? discusses the changes and the practical steps that organisations should take to prepare for the new regime.
Data protection
ICO governance changes from 30 September
From 30 September 2026, the Information Commissioner's Office will become the Information Commission as part of the governance reforms introduced by the Data (Use and Access) Act 2025 (DUAA).
Fortunately, for anyone responsible for updating templates and policies, the familiar acronym 'ICO' remains. It will now refer to the Information Commission's Office rather than the Information Commissioner's Office. The ICO has released guidance on this which can be viewed here.
EU-US data transfers face renewed uncertainty
A recent US Supreme Court decision, Trump v Slaughter, has prompted fresh concerns about the long-term stability of the EU-US Data Privacy Framework (DPF).
The ruling has led some privacy commentators to question whether the US Federal Trade Commission continues to satisfy the independence requirements underpinning the European Commission's adequacy decision. While the judgment does not directly affect the DPF, it could prompt renewed scrutiny of the framework and potential future challenges.
For many organisations, the practical impact may be limited, as alternative transfer mechanisms such as International Data Transfer Agreements (IDTAs) and transfer risk assessments remain available. However, businesses that rely heavily on the DPF should monitor developments closely.
Trade marks
Samsung ordered to pay US$11.6m in trade mark damages
The High Court has ordered Samsung to pay US$11.6m in damages following its infringement of Swatch trade marks through downloadable smartwatch face applications.
The most notable aspect of the decision, which can be viewed here, is the court's approach to calculating damages. Rather than accepting either party's valuation, the judge considered the hypothetical licence fee Samsung would have paid to avoid infringement, concluding that US$11.6m represented a reasonable figure.
The decision is a useful reminder of the potentially significant financial consequences of IP infringement, particularly in digital products and mobile app ecosystems.
Competition law
Court of Appeal clarifies approach to selective distribution arrangements
The Court of Appeal in Deckers UK Ltd v Up & Running (UK) Ltdhas delivered an important judgment for businesses operating selective distribution networks.
The case concerned HOKA running shoes and restrictions placed on sales through a discount-only website. The Competition Appeal Tribunal had concluded that the arrangements amounted to resale price maintenance and infringed competition law. The Court of Appeal disagreed, emphasising that it is necessary to consider the wider economic context before concluding that an arrangement is inherently harmful to competition.
The judgment will be welcomed by brand owners operating selective distribution models and serves as a timely reminder to consider competition law risks when drafting distribution and reseller agreements.
Supply chain management
Immigration and Asylum Bill: proposed overhaul of modern slavery reporting
The Immigration and Asylum Bill proposes significant changes to the reporting regime under section 54 of the Modern Slavery Act 2015 (MSA).
Currently, organisations with annual turnover of £36m or more must publish a slavery and human trafficking statement each financial year. The Bill would strengthen these requirements by prescribing mandatory content and introducing financial penalties for non-compliance.
The proposals reflect a broader trend towards increased supply chain transparency and accountability. Organisations with significant supply chains may wish to start considering whether their reporting processes, supplier due diligence arrangements and contractual controls would withstand the more rigorous regime proposed by the Bill.
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.
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