A ‘Christmas Carol’ of litigation: legal risks in the leisure industry

Manisha Modasia, Associate

As the festive season approaches and we reflect on 2025, the leisure and hospitality industry – a sector built on delivering memorable customer experiences – must navigate an increasingly complex landscape of legal risks. From traditional consumer protection issues to emerging challenges shaped by enhanced regulation and heightened social consciousness, businesses must navigate a complex legal environment to keep the celebrations merry and bright.

The ghost of litigation past: the immediate impact of consumer harm

Historically, litigation in the leisure sector focused on tangible, immediate harm to consumers—think personal injury claims or food safety breaches.

One memorable example dates back to 2009, when London’s High Timber restaurant made headlines for requiring diners to sign a legal waiver before indulging in its traditional Christmas pudding which contained ‘lucky charms’ – a charming tradition but also a choking hazard or tooth damage risk. Acting on advice from solicitors, owner Neleen Strauss introduced an indemnity form stating:

“I absolve entirely High Timber from all blame or liability should I come to any harm including, but not limited to, a chipped tooth, or any injury as a result of swallowing it.”

The move sparked debate but also amusement—many customers even kept their signed waivers as quirky souvenirs.

The ghost of litigation present: enhanced consumer protection and transparency

Today, litigation trends reflect a regulatory push for greater transparency, particularly in online transactions and pricing practices. A prime example is the Gold’s Gym Investigation (2024–Present), launched by the UK’s Competition and Markets Authority (CMA) under the Digital Markets, Competition and Consumers Act 2024 (DMCCA). The probe examines whether mandatory joining fees were clearly disclosed upfront or introduced later in the sign-up process—a practice known as “drip pricing.”

Key themes shaping current litigation include:

• Upfront pricing: Total costs must be visible from the start of the customer journey.
• Mandatory fees: All compulsory charges must be included in the headline price.
• CMA powers: From April 2025, the CMA can impose significant fines for consumer law breaches without court involvement.

This evolving framework underscores the importance of transparency and proactive compliance in protecting consumer trust.

The ghost of litigation future: ESG, supply chain accountability, and commission transparency

Looking ahead, litigation in the leisure industry will increasingly involve systemic, ethical, and financial issues driven by rising stakeholder expectations and stricter regulations:

• Subscription contracts: New rules (expected in 2026) will target “subscription traps,” requiring clearer cancellation options.
• ESG litigation: Misleading sustainability claims (“greenwashing”) expose businesses to litigation from consumers and investors. Accuracy and verifiability are essential.
• Supply chain responsibility: Companies may face criminal liability if they benefit from illegal practices, such as forced labour, within their supply chains. Comprehensive due diligence is no longer optional.
• Undisclosed commission payments: Hidden fees or opaque commission structures in hotel management and booking could trigger legal challenges under strengthened consumer protection laws.

The road ahead

From safeguarding physical safety to ensuring ethical and financial transparency, the leisure industry’s legal journey is becoming more complex. Businesses must embrace robust compliance frameworks, transparent pricing models, and thorough supply chain audits to mitigate risk.

As consumers grow more empowered, often leveraging AI tools to understand their rights, the industry must stay ahead by prioritising honesty, accountability, and proactive risk management. In doing so, leisure businesses can ensure a legally secure and truly festive future.

If you need advice on any of the above then please contact our dispute resolution team.