Retail spotlight
How retailers could risk CMA action
Retailers are being urged to review their customer-facing terms and conditions, refund policies and subscription arrangements as the Competition and Markets Authority (CMA) steps up its ability to tackle unfair contract terms.
N
ational law firm Clarke Willmott has warned that retailers could face regulatory scrutiny if consumer contracts contain terms that are
considered unfair, unclear or disproportionately weighted in favour of the business. Te warning follows updated CMA guidance on unfair
contract terms under the Consumer Rights Act 2015 and comes at a time when the regulator has significantly stronger enforcement powers under the Digital Markets, Competition and Consumers Act 2024 (DMCC Act). Amy Peacey, partner in Clarke Willmott’s commercial
contracts team, said: “Te CMA’s updated guidance does not change the law, but it provides a clear indication of how the regulator intends to assess and enforce unfair contract terms going forward. “Tis is particularly significant because the publication
comes at a time when the CMA has significantly stronger enforcement powers. Under the DMCC Act, the CMA can directly investigate and enforce breaches of consumer protection law, including unfair contract terms, without first obtaining a court order.” Retailers should take the opportunity to review
customer-facing terms and conditions, including refund and returns policies, subscription arrangements, delivery charges and promotional terms, according to Amy. Te revised guidance reinforces several important
principles, including that fairness remains paramount and that transparency is a separate obligation. Even where a term is substantively fair, it may attract scrutiny if it is unclear, ambiguous or hidden within lengthy terms and conditions. Amy added: “Businesses should ensure important
information is presented prominently and in plain language. Te CMA is placing increased emphasis on how consumers engage with terms and conditions, particularly online. “Retailers should take this opportunity to review their
customer-facing terms and conditions, refund provisions, subscription arrangements and ancillary charges. Particular scrutiny should be applied to clauses that allow unilateral changes, impose disproportionate charges, limit refunds, or grant broad discretionary rights to the business.
www.pcr-online.biz September/October 2026 | 45 “Combined with the CMA’s enhanced enforcement
powers, the guidance serves as a timely reminder that consumer contract terms should be both fair and transparent. Businesses that proactively review and update their consumer contracts now will be better placed to manage regulatory risk and maintain consumer trust.”
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