Consumer law | UK Regulatory Outlook June 2026
Published on 30th June 2026
CMA secures court-endorsed settlement with Emma Sleep over misleading online sales practices | CMA fines business for opting customers into paid services | CMA launches investigation into Ryanair's mandatory family seat fee | CMA writes to trader recommendation platforms following review | Chancellor announces new powers for regulators to tackle crisis-related price gouging
CMA secures court-endorsed settlement with Emma Sleep over misleading online sales practices
The Competition and Markets Authority (CMA) has secured a settlement with Emma Sleep after the company admitted it infringed consumer law by using misleading urgency claims.
The CMA launched an investigation into Emma Group in 2022 over concerns about its use of online sales practices such as misleading countdown timers, "high demand" messages and discount claims that could pressure consumers into making purchases. In 2024, the CMA informed the Emma Group that unless the company committed to making changes to its practices, it would commence court action. The CMA subsequently filed a claim in the High Court.
In May 2026, the CMA secured a settlement with Emma Sleep. As part of the settlement, Emma Sleep has given binding undertakings to cease the infringing practices identified and ensure that future pricing claims on its website are clear, accurate and do not create a misleading sense of urgency.
Under the terms of the settlement, it must also implement robust compliance measures across its business, including monitoring adherence to the undertakings, reporting to the CMA regarding such adherence, and taking prompt action to address any potential breaches.
A separate issue concerning Emma Sleep's use of "was/now" reference pricing remains ongoing and was to be determined separately at a trial starting on 4 June 2026.
The Emma Sleep case was conducted under the CMA's previous enforcement powers, which required the CMA to bring court proceedings to enforce consumer protection law. Under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), the CMA now has direct enforcement powers and no longer needs to go to court to take action against businesses that breach consumer law, thereby significantly increasing the practical enforcement risk for businesses.
CMA fines business for opting customers into paid services
The CMA has fined appliances retailer Marks Electrical Limited £720,000 for infringing consumer protection law, as part of an investigation launched in November 2025, using its direct enforcement powers under the DMCCA.
The CMA found that the company automatically opted customers into, and charged them for, extra services without their express agreement. Opting consumers into making extra payments under a contract without obtaining their express consent before the consumer becomes bound by the contract is prohibited under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. The CMA has also referred to its guidance on getting consent for additional charges when selling online.
As part of the settlement, Marks Electrical will be required to refund charges paid by consumers who were automatically opted into purchasing additional services and must also report back to the CMA.
The fine includes a 40% reduction for settling the case, as the company admitted the breach and agreed to adhere to a streamlined administrative procedure.
CMA launches investigation into Ryanair's mandatory family seat fee
The CMA has launched an investigation into Ryanair in relation to a potentially unfair contract term requiring consumers travelling with a child to pay a mandatory fee to sit next to that child on flights.
Ryanair's terms and conditions require at least one parent to sit with their children aged two to 11 when they fly. An adult has to pay a fee to secure a seat next to their child. For all other passengers, reserving a seat is optional. The CMA is investigating whether Ryanair's approach to seat reservations may mean that parents are being charged for the airline to meet its child safety and disability-related obligations under aviation rules.
The CMA is additionally examining the presentation of the fee on Ryanair's website and, specifically, whether the fee is included in the total price displayed to the consumer at the beginning of the purchase process. The DMCCA includes prohibitions on omitting "material information" from an invitation to purchase, which must include all material information, including mandatory fees and charges. "Drip pricing" (showing consumers an initial headline price for a product and then adding further mandatory charges during the purchasing process) is a prohibited practice.
CMA writes to trader recommendation platforms following review
Following a review of trader recommendation platforms (TRPs), the CMA has written to several platforms where it has identified concerns with their practices. The CMA's Executive Director for Consumer Protection has also published a joint article with National Trading Standards outlining their main concerns and reminding TRPs of their obligations under consumer law. They state that they will continue to monitor TRPs' practices.
Chancellor announces new powers for regulators to tackle crisis-related price gouging
The chancellor has announced that the government will introduce a new framework giving the CMA and other regulators "stronger, more targeted powers" to act quickly to tackle price gouging, where companies raise prices excessively and unfairly during a crisis.
The government stated that where regulators identify concerning practices, they could publicly disclose information on how companies have changed their margins in response to an economic crisis and the reasons for doing so.
It stated that it is prepared to go further if needed. Where necessary, it may grant the CMA and other regulators targeted enforcement powers to direct firms to alter their pricing practices during an emergency and, where necessary, to impose penalties.
Civil Aviation Bill: new consumer protection powers for the CAA and enhanced air passenger rights
The Civil Aviation (Consumer Protection and Regulatory Reform) Bill had its first reading in the House of Lords on 14 May 2026. It focuses, among other things, on supporting the aviation industry and strengthening related consumer rights.
Among other things, the bill gives the secretary of state powers to make regulations addressing the rights of air transport services' and airport services' users, the duties and liabilities of air transport service providers, those who advertise or market those services and airport operators. The regulations may make provisions in relation to price transparency, baggage loss or damage, liability for passenger death or personal injury, passenger accessibility and information requirements.
The bill also amends the DMCCA and the Consumer Rights Act 2015 to give the Civil Aviation Authority direct consumer enforcement powers in relation to air transport and airport services, alongside the CMA's existing role as a "direct enforcement authority" for general consumer protection infringements.