New Competition and Market Authority rules for universities come into force
Posted on behalf of: University of Sussex
Last updated: Wednesday, 4 June 2025

New laws are changing the way universities enter consumer contracts, and this has a direct impact on Sussex staff.
In April 2025, Competition and Market Authority (CMA) issued enhanced guidance and strengthened its enforcement powers to tackle unfair commercial practices – meaning it can now directly investigate, determine failures and impose fines.
The new guidance, stemming from the Digital Markets, Competition and Consumers Act 2024, has implications across the whole student journey, beyond courses and including services such as accommodation.
Video: Caroline Roberts, Deputy Director of General Counsel, Governance and Compliance and Head of Legal Services
Vickie Sheriff, Executive Director of Communications, Engagement and Advancement, said: “At Sussex, we pride ourselves on treating every student as an individual – providing them with a unique academic grounding for a prosperous future. But the experience we provide and how it is communicated to both current and prospective students is subject to consumer law which places important obligations on us to be open and transparent.
“It has never been more important to share our successes with the world and continue to attract and retain talented students. So it is vital that what we say we will deliver is always accurate and backed up by evidence. Our courses, our costs, our content – we must be able to stand behind it all, to ensure that students know that Sussex is a university they can trust.”
Key changes
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See below for our list of ‘do’s and don’ts’, including working with Student Ambassadors, discussing rankings, and avoiding misleading information and claims about cost of living.
- The Act has widened what counts as a transactional decision. A transactional decision used to be narrowly interpreted to mean a consumer’s decision to purchase a product or service. The definition now covers more than a simple choice to enrol or not (purchase), and includes any decision made by a student on whether to purchase, continue, or cancel a course. These decisions span the duration of a student’s journey, and are now part of the protected consumer decision making process.
- The Act has expanded what counts as ‘Material Information’ in a student’s decision to accept an offer. Material information is not just course information, but it also includes what we say about ancillary services (such as accommodation, wellbeing support, and support and sports/leisure facilities).
- Another key change is that failing to provide the student with Material Information, specifically course/fee structures and all mandatory additional charges, in our prospectuses/offer letter is an omission which may mislead a student in their decision making. Under the new Act, information gaps will automatically create compliance risk for the University.
- The Act extends the concept of vulnerability to include a person’s circumstances. Students are deemed to be inherently vulnerable due to age and potential lack of worldly experience. The University must ensure that its interactions with students, particularly in respect of financial and administrative information and/or decisions, do not involve aggressive practices (such as putting undue pressure on the student to enrol, receive a fee reduction or to agree last minute course changes).
- The Act extends liability not just to what a University says or does itself, but it also covers anyone advocating on the University’s behalf and includes Student Ambassadors, agents, subcontractors, marketing firms, recruitment partners – domestic and international. It also updates the list of ‘Banned Practices’ to include manipulation of consumer reviews (for example, only showing positive outcomes in a mixed review).
- In summary, the University must be transparent, accurate and comprehensive in the way we make the offer to a student. CMA enforcement powers have strengthened, and CMA can directly investigate, determine failures and impose fines. It is essential that the University understands these changes so that it can ensure compliance across the student journey.
- Internal communication across Faculty and Professional Services is recommended to inform and support staff with compliance. This note is intended to provide guidance on some key changes. It is not exhaustive, and support and/or advice should be obtained where needed.
Click below to view recommended do’s and don’ts