On 22 July 2026, the UK Competition and Markets Authority (CMA) published its final updated guidance on unfair contract terms under the Consumer Rights Act 2015 (CRA). While the underlying law has not changed, the revised guidance is significant because it reflects a decade of case law, enforcement experience and, crucially, the CMA’s enhanced consumer protection powers under the Digital Markets, Competition and Consumers Act 2024 (DMCC Act).
The updated guidance replaces the CMA’s previous 2015 guidance and is intended to provide businesses with a more accessible and practical explanation of how the unfair terms regime applies in practice. It includes updated examples, clearer explanations of key concepts and a stronger focus on transparency and fair dealing in consumer contracts.
Why does this matter?
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. Businesses that continue to use unfair terms may face substantial financial penalties in addition to reputational damage and contractual unenforceability.
Key messages from the CMA
The revised guidance reinforces several important principles:
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Fairness remains paramount. Terms that create a significant imbalance between the rights of the business and the consumer, to the consumer’s detriment, are likely to be regarded as unfair and unenforceable.
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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. Businesses should ensure important information is presented prominently and in plain language.
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Particular attention should be given to “grey list” terms. These are categories of provisions identified in Schedule 2 of the CRA as potentially unfair. The updated guidance includes additional practical examples showing how such terms may be assessed.
The CMA also highlights emerging issues in digital contracting, encouraging businesses to consider how consumers engage with online terms. The guidance suggests using layered information, pop-ups, FAQs and other methods to ensure key contractual provisions are brought to consumers’ attention.
Practical steps for businesses
Businesses offering goods or services to consumers should take this opportunity to review their customer-facing terms and conditions, cancellation policies, subscription arrangements, refund provisions and ancillary charges. Particular scrutiny should be applied to clauses allowing unilateral changes, imposing disproportionate charges, limiting refunds or granting broad discretionary rights to the business.
Conclusion
The 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. 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.