Commercially Connected shorts - 3 June 2026

Round-up of knowledge

Welcome to Commercially Connected shorts, our weekly bitesize newsletter summarising the latest updates in UK and EU commercial law.

This week we look at:

• Trade: guidance for sectors on the UK-EU sanitary and phytosanitary agreement (‘SPS’)

• Consumer: are you compliant with CMA guidance?

• Financial Services: Reform of the Consumer Credit Act 1974 takes shape

• Tech: flagging unsafe content - Digital Services Act consultation

Preparing for SPS

On 1 June 2026 the government published updated guidance for businesses on the SPS agreement (which follows their review of call for information responses from stakeholders). 

The UK-EU SPS Agreement is intended to reduce red tape at the border, making it easier and cheaper for plants, animals and their products (including food and drink) to be imported and exported, and abolishing the vast majority of routine checks on animal and plant products moving between the EU and Great Britain (including between Great Britain and Northern Ireland). The proposed SPS Agreement would be beneficial for UK and EU businesses currently dealing with the costs and delays caused by border checks and formalities. However, the SPS Agreement will also require dynamic alignment with EU standards, which has caused concern for many in the agri-food sectors.

Whilst the SPS Agreement is not expected to take effect before mid-2027 (as negotiations continue to finalise the detail – particularly regarding exceptions), businesses in scope are encouraged to start preparing now (and the results of the call show they are keen to do so).

• sector guidance on preparation is available for businesses in the following fields:

  • animal breeding regulation - for the zootech sector, the agreement largely formalises existing alignment with EU rules, with limited operational impact expected

  • border control – changes will cut red tape and support increased production as the UK aligns with EU rules

  • fish and shellfish - the SPS should simplify UK-EU seafood trade but will require alignment with EU rules across production, safety and supply chains

  • food manufacturing, processing and standards - the direction of travel is clear: system-wide alignment with EU food rules. Prioritise gap analysis and planning at this stage in the process

  • food production, plants and animals - the SPS represents a strategic shift towards EU regulatory alignment for agri‑food sectors. Expect reduced friction with the EU and less regulatory divergence. Early planning is recommended at this stage

  • genetic technologies – regulatory alignment with the EU should bring minimal change for GMOs (genetically modified organisms) with details still to be finalised re precision breeding

  • horticulture - the SPS will significantly align UK horticulture rules with the EU – planning can start now on the impacts

  • logistics, hauliers and trade intermediaries - the SPS should materially reduce friction in UK-EU agri-food trade, benefiting logistics operators. Plan now to understand the changes. However, it introduces EU alignment for non-EU trading, so compliance obligations remain critical

  • organics - the SPS will not change the core principles of organic farming or production in Great Britain. Early awareness and planning is recommended, but businesses should wait for detailed guidance before making operational changes

  • veterinary sector - the SPS represents a shift towards EU alignment with awareness and early preparation recommended at this stage

• the call for information received 489 responses from the agri-food sector, which will inform further business support. Full findings from the call are expected in summer 2026

• expect further details on the exceptions and transition periods to be announced later this summer

• further checklists and practical tools are expected in autumn 2026

• Defra has said it will support businesses with the transition and is reviewing the digital systems that will be needed under the new arrangements

If agreed, the new regime could materially reduce friction, cost and delay for businesses moving in-scope goods between Great Britain, the EU and Northern Ireland as certification requirements are reduced or removed. Businesses affected by SPS controls should monitor developments now, engage with their supply chains on future changes and identify any certification, border process or systems changes that may be needed ahead of implementation.

Consumer law compliance reminders

• On 28 May 2026 the Competition and Markets Authority (‘CMA’) and National Trading Standards (‘NTS’) reported that they have written to several trader recommendation platforms (‘TRPs’) to remind them of their obligations under the Digital Markets, Competition and Consumers Act 2024.

• The CMA and NTS jointly conducted a review of a sample of TRPs and highlighted positive improvements such as vetting checks, ongoing monitoring, better signposting of complaints processes and clearer sanctions policies, but also found evidence that compliance with guidance remains inconsistent.

This is a timely reminder to check you comply with CMA guidance on complying with consumer law and fake reviews if operating online review sites (or publishing online reviews).

Reform of the Consumer Credit Act takes shape

• HM Treasury has published its policy statement on reform of the Consumer Credit Act 1974. The government will repeal many of the remaining statutory provisions and recast them into FCA rules to create a more flexible regime. The reforms affect all firms carrying on consumer credit or consumer hire activities. They are relevant to lenders, brokers, debt advisers, hire providers, motor finance firms and their advisers.

• Our article UK: Reform of the Consumer Credit Act 1974 takes shape highlights what’s in store.

• With thanks to Naomi Seward, Rachael Browning, Liam Smith and Thomas E. Pritchard

Guidelines for trusted flaggers under DSA – time to respond

With responses due by 26 June 2026, the European Commission is consulting on draft guidelines for trusted flaggers under the Digital Services Act (DSA). Trusted flaggers are specialist appointed bodies whose notices about illegal online content, such as child sexual abuse material, IP infringement and fraud, must be prioritised by online platforms.

The draft guidance sets out how trusted flagger status will be awarded, how notices should be handled by platforms, and the safeguards intended to ensure trusted flaggers act independently, objectively and with appropriate accountability.

The guidance will shape how quickly and consistently platforms respond to illegal content notices under the DSA. It also signals a more formal process for closer scrutiny of platform notice-handling processes and the governance standards expected of organisations seeking trusted flagger status. This is an opportunity to help shape the governance regime under the DSA ahead of the guidelines planned for adoption by the Commission later this year.