CMA enforcement powers – why they should be on a travel company’s radar - BM Insights

For travel businesses, the Digital Markets, Competition and Consumers Act 2024 (DMCCA) is not simply a consumer law update: it materially changes the speed, cost and reputational risk of regulatory intervention by giving the Competition and Markets Authority (CMA) direct enforcement powers.

A fundamental shift in enforcement

Previously, the CMA had to seek court orders to stop practices it considered unlawful. The DMCCA changes this by allowing the authority to enforce consumer law directly against businesses. This represents one of the most significant changes to UK consumer law enforcement in decades and materially increases the risks attached to non-compliance.

The CMA can now investigate suspected infringements, determine whether relevant consumer protection laws have been breached and impose directions, consumer redress and financial penalties directly, without first obtaining a court order.

For travel businesses, this means consumer protection issues can escalate far more quickly than before, with matters that may previously have resulted in regulatory engagement and lengthy court proceedings now leading to direct enforcement action by the CMA itself. Consumer protection should always be a priority, not just a compliance afterthought.

The CMA has also been granted stronger investigative powers, including the ability to compel the production of information and documents. The CMA can also impose penalties for failures to comply with information requests, obstruction of investigations or the provision of false or misleading information.

The financial stakes are high

Reflecting the regulatory approach taken in related consumer areas including data protection, the CMA’s enhanced powers are supported by substantial sanctions. For the most serious consumer law breaches, the CMA can impose penalties of up to 10% of global turnover or £300,000, whichever is higher. It can also order redress for customers and require businesses to change their practices.

Individuals such as directors and senior managers can not only face fines of up to £300,000 but also disqualification orders and even criminal charges, meaning consumer compliance is no longer simply a legal or regulatory concern but needs to be taken seriously at board level.

What does this mean for the travel industry?

The new powers apply across a broad range of consumer protection requirements. In the travel sector, areas likely to attract regulatory attention include misleading advertising, unfair contract terms, the presentation of customer reviews, and pricing transparency (as referred to elsewhere in this publication).

Fake reviews and drip pricing have drawn significant attention because they clearly illustrate practices that can erode consumer trust. However, businesses should not treat them as standalone compliance issues.

The broader message is that the CMA now has the tools to intervene more quickly where it believes consumers are being treated unfairly. And for travel businesses operating in highly competitive markets and often on relatively tight margins, the reputational impact of an investigation may be just as significant as any financial penalty.

Early signals from the regulator

The CMA has indicated its initial focus will be on the most serious and obvious consumer law infringements, including misleading information provided to consumers and practices that cause significant consumer harm. The travel sector is one where the CMA has already identified potential concerns in these areas.

While the investigations remain at a relatively early stage and no findings have been made, the CMA’s announcement in August 2026 that it was looking into Virgin Atlantic and Trainline, among other companies, over potential drip pricing concerns sends a clear signal to the travel industry.

The investigation into Trainline focuses on whether mandatory fees were properly included in upfront prices shown to consumers buying train and coach tickets. The CMA identified booking fees ranging from £0.59 to £2.79 for certain rail journeys and £1.50 for coach bookings.

The investigation into Virgin Atlantic relates to package holidays and examines whether mandatory resort fees and local taxes were sufficiently reflected in headline prices presented to customers. According to the CMA, these charges can sometimes add hundreds of pounds to the overall cost of a holiday.

The fact that two major travel operators are being scrutinised demonstrates how seriously the regulator is taking pricing transparency.

Practical steps members should take

Travel businesses should consider the following measures as a matter of priority:

Ensure responsibility for consumer compliance is shared across legal, marketing, sales and operational teams.
Test customer journeys to identify points where information could be misunderstood or important details disclosed too late.
Review internal procedures for responding to regulatory enquiries and information requests.
Ensure senior management understand the potential consequences of consumer law breaches under the new regime.
Treat consumer compliance as an ongoing risk management exercise, rather than a one-off legal review.

While we await the outcome of publicised investigations, it is already clear that businesses that prioritise transparency, clear communication and robust compliance processes will be best placed to navigate this new enforcement landscape.

This article was written by Commercial Solicitor, Tom Lloyd-Jones, first published in ABTA’s Travel Law Today Autumn 2026 magazine.