The Trading Bulletin | June 2025

Data protection updates

M&S Data Breach

The Easter Sunday cyberattack against Marks & Spencer is another stark reminder that even well-resourced organisations are vulnerable to cyberattacks. See our article discussing how you can better protect your organisation here:

Protect your organisation – five lessons from recent cyberattacks | Foot Anstey

ICO cracks down on unsolicited marketing calls

The ICO encouraged organisations to assess their direct marketing processes following its issue of a £90,000 fine to a refund recovery service, AFK, for its contravention of the requirement that clear, informed and specific consent is required to make unsolicited direct marketing calls.

Further information can be found here.

New ICO guidance on anonymisation

Retailers who use anonymisation as a privacy-friendly way to harness the potential of personal data should familiarise themselves with the new guidance here: About this guidance | ICO

Cyber Security and Resilience Bill

The government has published a policy statement outlining measures it is considering incorporating within the Cyber Security and Resilience Bill which aims to tighten existing regulations in response to a more nuanced cybersecurity landscape with increasingly intelligent threat actors.  The full statement can be found here.

Health & safety/compliance updates

Modern Slavery guidance updated

Retailers may wish to refresh their modern slavery statements in light of the updated statutory guidance on transparency in supply chains see Slavery and human trafficking in supply chains: guidance for businesses - GOV.UK.   

Martyn’s Law receives Royal Assent

The Terrorism (Protection of Premises) Act 2025 received Royal Assent on 3 April 2025. Find out more about how you can prepare: Martyn's Law receives Royal Assent

Failure to prevent fraud offence imminent

Retailers should take action to update fraud risk assessments and ensure appropriate fraud prevention procedures are in place ahead of the failure to prevent fraud offence coming into force on 1 September 2025.

See our article: The Economic Crime and Corporate Transparency Act 2023: what's next? | Foot Anstey

New sanctions regulations

Retailers should consider whether they have proportionate sanctions screening procedures in place to mitigate their sanctions risk, particularly in light of the recent new Russian sanctions.   

Marketing updates

DMCC updates

The UK government’s crackdown on hidden pricing and fake reviews in consumer marketplaces has taken effect as of 6 April 2025. Businesses may now also face direct enforcement action from the Competition and Markets Authority.

See our article here: No more false impressions: UK government crackdown on hidden fees and fake reviews to take effect from April 2025 | Foot Anstey

Government update on less healthy food restrictions

The Government confirms their view is that pure brand advertising is not in scope of the upcoming less healthy food restrictions, and that the restrictions will not be in force until 5 January 2026.

See the Government update here and here.

Location, location, location – The ASA's wider piece of work combatting misleading impressions of operational addresses

Of the 37 rulings handed down by the ASA in April 2025, five were criticised for failing to include the geographical address from which the business operated. The rulings form part of a wider piece of work on ads from companies which give the impression that they are based in the UK but are actually based overseas.

For further information, see our full article here (which summarises the ruling upheld by the ASA) and other related rulings on similar geographical location claims/omissions here.

VAT in prices – to include or not to include?

VAT inclusive/exclusive prices are a recurring issue across industries and sectors, with the ASA receiving thousands of complaints. Pursuant to the CAP Code, prices in ads are required to include all non-optional taxes, duties, fees and charges that apply to all or most buyers. The ASA's guidance is intended to support retailers/marketers to ensure their quotes comply with the rules.

Key pointers include:

• If any prospective buyer is likely to see the ad, be that an individual consumer or a business, and both are able to purchase the product, a VAT-inclusive price will need to be quoted.
• If a quote is VAT-exclusive, this will need to be clearly indicated to all buyers.
• If a quote is VAT exclusive, it will need to be prominently accompanies by the rate or amount of VAT.

Financial services updates

Regulation of 'buy-now pay-later' lending

'Buy-now, pay-later' lending (or BNPL lending) refers to interest-free instalment credit that allows borrowers to split the cost of purchases into regular repayments within a 12-month period and in 12 or fewer instalments. This type of lending is currently unregulated; however, following a lengthy consultation process by HM Treasury, the Government has now published draft legislation that will bring this type of lending within regulation.

What does this mean in practice for retailers?

• BNPL lenders: broadly speaking, BNPL agreements offered by third-party lenders will be subject to the new regulatory regime, whilst BNPL agreements provided directly by merchants (where the merchant acts as the lender and the supplier of the goods/services) will remain exempt. Third-party lenders will need to obtain authorisation from the FCA to continue offering BNPL products.

• Credit broking: most merchants will not require credit broking permissions if they only offer BNPL products as payment options to their customers. However, domestic premises suppliers will not be exempt (though the Government has stated that they are considering this point further and therefore this is subject to change).  A domestic premises supplier is a supplier who sells goods to customers, who are individuals, while the supplier or its representative is physically present in the customer's dwelling. A supplier will be classed as a domestic premises supplier irrespective of whether the retailer carries out any credit broking during the visit.

• Financial promotions: merchants offering BNPL products from third-party lenders will need to have their promotions of BNPL products approved by the third-party lender. This will mean greater engagement by BNPL lenders with retailers to ensure the content of their websites and customer journeys are compliant with the financial promotion rules.

A copy of the Government's recent publication and the legislation to be laid out before Parliament can be found here.

The UK government intends to put the draft legislation before Parliament soon. The FCA will then have 12 months to draft, consult and finalise its rules on BNPL lending.

FCA launches 5-year strategy which aims to support growth and improve lives

The FCA's growth plan has emerged, which sheds light on the key focal points for the next half a decade. If you would like more detail on the above please look at our recent article here.

New areas for action and proposals for reviewing FCA rules and requirements following introduction of the Consumer Duty

In July 2024, the FCA published a 'Call for Input' to understand how they could simplify their regulatory rules and requirements following the introduction of landmark outcomes-focused Consumer Duty. In response feedback statement FS25/2 was published on 25 March and kicked off an ambitious rollout of new action to simplify the requirements placed on firms. The FCA have promised to consult on removing unnecessary prescriptions, updating outdated requirements and improving the alignment with Duty. The confirmed full programme of action is due to be released in September 2025. Of particular interest to retailers are the FCA's continuing work to reform the Consumer Credit Act and reviewing/consulting on the rules concerning advertising consumer credit. Within the next year, The FCA are also currently in the process of engaging with stakeholders on the future of contactless payment limits and have promised updates for later this year. The FCA's FS25/2 feedback statement can be found here.

Motor finance case heard in the Supreme Court

The Supreme Court's judgment is expected in early summer. This was an appeal to the Supreme Court of the rulings in three test cases: Johnson v FirstRand Bank Ltd, Wrench v FirstRand Bank Ltd, and Hopcraft v Close Brothers Ltd concerning non and partial disclosure of commission payments received by intermediary finance brokers in the motor finance sector. The Court of Appeal's decision last year was a significant shock to the motor finance industry, which triggered lenders setting aside funds to cover potential compensation costs but also had significant potential implications for introducer/broker arrangements in the consumer credit market more broadly as the legal principles of the case were not limited to motor finance. If you would like further details on the original Court of Appeal case please read our Foot Anstey article here.