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The Weekly Brief · Issue #2 · 31 October 2026

Budget changes for online sellers, a $0 that wasn't, and a price promise with a catch

Sources checked: HM Treasury Budget 2026 documents, CMA, DBT business support finder, ICO news and ASA rulings (24–31 October 2026); FTC and state attorney general releases (Nebraska, Connecticut), San Francisco City Attorney, GSA newsroom (October 2026)

Welcome to issue #2 of the UK Small Business Compliance & AI-Ads Brief. This week the UK Budget landed (28 October), so the UK section leads with what it means for sole traders and online sellers. The US section is longer than usual: a big case about hidden fees and hard-to-cancel subscriptions, a large privacy settlement, and a federal contracting audit. Every item has a one-line TLDR, a link to the original source, and one thing to do this week. This is general information, not legal or tax advice. If something affects you, read the source.

UK

1. Budget 2026: trading allowance tripled, marketplaces to collect VAT from bigger UK sellers

TLDR: The Chancellor presented the Budget on 28 October. Three measures matter most to small online businesses. First, the Income Tax trading allowance goes up from £1,000 to £3,000 from 6 April 2027, so individuals can receive up to £3,000 of trading and miscellaneous income tax-free each year. Second, from 1 October 2027, online marketplaces will collect the VAT on sales by UK businesses that are VAT-registered, or that make more than £90,000 of sales a year on that platform. The £90,000 applies to each platform separately. Personal sales, second-hand goods and business-to-business sales are out of scope, and HMRC will publish detailed guidance before it starts. Third, people joining Making Tax Digital for Income Tax in April 2027 won't get penalty points for late submission of their first four quarterly updates in 2027-28.

Do this week: If you sell on Amazon, eBay, Etsy or similar, check your annual sales on each platform separately against £90,000, and note October 2027. If you are VAT-registered, expect your marketplace to collect VAT on qualifying sales from then. Don't change your prices or set-up until HMRC's guidance is out. If your side income is small, note that the £3,000 allowance only starts on 6 April 2027. For the current tax year the limit is still £1,000.

Sources: HM Treasury, "Budget 2026: Breathing space for today, hope for the future", 28 October 2026 · HM Treasury, Budget 2026 document (HTML) · HM Treasury, "Extending VAT Online Marketplace Liability Rules: Factsheet", 28 October 2026

2. CMA opens an investigation into Meta's terms for businesses, and asks about Meta One

TLDR: The CMA is investigating whether Meta's commercial terms for businesses that use its platforms break competition law. The CMA says the terms could let Meta collect content from businesses' and publishers' websites and use it for its own products, including AI features, without giving those businesses a choice. Meta had planned to bring the terms in on 30 October, then delayed to 20 November. On 28 October it paused the rollout pending a consultation with industry groups. No decision has been made on whether the law has been broken. Separately, the CMA is asking Meta for information about its new Meta One business subscription, after the Federation of Small Businesses raised concerns about the potential impact on small businesses of posting external links on Facebook and Instagram without a subscription.

Do this week: Nothing changes for your ads or pages yet. If you depend on Facebook or Instagram, keep a copy of any new business terms Meta sends you and read what they say about your content and your website. Make sure your email list and website don't depend on one platform.

Source: CMA, "CMA opens investigation into Meta's commercial terms", 30 October 2026

3. ASA: "We'll match it" needed the catch in the ad itself

TLDR: The ASA upheld a complaint about a paid Google ad for Attraction Tickets that said "Find A Lower Price & We'll Match It". The promise only applied to lower prices from ABTA or ABTOT members. The company said Google's character limits stopped it putting the terms in the ad, and that the full terms were on its website. The ASA said the restriction was significant, the terms page was at least two clicks from the ad, and the ad wasn't so short that the condition couldn't fit. The claim was found misleading under CAP Code rules 3.1, 3.3 and 3.9.

Do this week: Look at every price-match, "lowest price" or "money-back" promise in your search and social ads. If a condition changes what a shopper would understand (only certain competitors, only certain products, only for a limited time), put it in the ad. Don't rely on a terms page. If it won't fit, change the claim.

Source: ASA ruling on Attraction Tickets Ltd t/a Attraction Tickets, 28 October 2026

4. Free help this week: tendering support and ICO data protection training

TLDR: Two free programmes for small firms appeared this week. Go4Growth, listed on GOV.UK's business support finder on 28 October, offers free help for SMEs and voluntary or community organisations bidding for public-sector work. That includes a personal action plan, help showing your competence and financial credibility, help writing the policies public buyers ask for, and help preparing bids. It is listed for every UK region, including Scotland, Wales and Northern Ireland. Separately, the ICO is promoting Data Protection Essentials, free online training for organisations with fewer than 250 staff and no Data Protection Officer that don't do high-risk processing. It has 13 modules of 10 to 15 minutes each, then a self-assessment. The ICO says it is not an accredited certification scheme.

Do this week: If public-sector work interests you, look at Go4Growth before paying anyone for bid help. If you handle customer data and have never had training, block out an hour for the first few Data Protection Essentials modules.

Sources: GOV.UK business support finder, "Go4Growth Programme", 28 October 2026 · ICO, "Economy Minister encourages small businesses to boost data protection skills", 30 October 2026 · ICO, Data Protection Essentials

US

5. FTC, seven states and two California counsel sue Toast over "$0" plans, add-ons and cancellation

TLDR: On October 29, the FTC, the attorneys general of Colorado, Florida, Illinois, Iowa, Nebraska, Oklahoma and Utah, the Los Angeles County Counsel and the San Francisco City Attorney sued Toast, the restaurant point-of-sale company, in the Northern District of California. The complaint alleges four things. First, that Toast's "Pay-as-you-Go" plan advertised $0 hardware and software but carried undisclosed fees and early termination charges, with one customer allegedly charged $5,318.87 after cancelling. Second, that it added subscription add-ons without consent and charged diners a $0.99 fee without adequate disclosure. Third, that cancelling required written notice, multiple contacts with customer service and, in some cases, sales pitches. Customers with Toast Capital loans could also face accelerated repayment if they cancel or switch. Fourth, that it falsely advertised "24/7/365" support. These are allegations, and a court will decide the case.

Do this week: This case reads two ways. As a seller: if you advertise "$0", "free" or "no contract", make sure the fees, minimum terms and early-exit charges are clear before someone signs up. Make cancelling about as easy as signing up, and only promise support hours you actually staff. As a buyer of software or payment services: find your contract's renewal date, notice period and early termination fee now, and check your last three invoices for add-ons you didn't ask for.

Sources: Nebraska Attorney General, "Nebraska, FTC, and Partnering States Sue Toast Inc. over Hidden and Unauthorized Fees and Other Unlawful Conduct", October 29, 2026 · San Francisco City Attorney, "City Attorney Chiu sues Toast for trapping restaurants in subscriptions riddled with unauthorized fees", October 29, 2026

6. GM to pay $220 million to 36 states over selling driving data without consent

TLDR: A coalition of 36 attorneys general announced that General Motors will pay $220 million to settle allegations that it sold drivers' driving behavior and location data to data brokers, who sold it on to insurers. The states say GM told drivers it wouldn't share their data with insurers without express consent. They also allege that dealership staff sometimes accepted the terms on customers' behalf while being incentivized to sign people up. GM must now get affirmative express consent before collecting or disclosing driving and location data, run internal and external privacy assessments, and train and oversee its dealerships. Connecticut says its investigation was among the first actions under its state privacy law, the Connecticut Data Privacy Act.

Do this week: If you share customer data with partners, ad platforms or data brokers, check that your privacy notice and consent wording say exactly that. If staff, resellers or agencies sign customers up for you, make sure the customer, not your staff, is the one who agrees, and that no bonus scheme rewards signing people up without asking.

Source: Connecticut Attorney General, "Attorney General Tong Announces GM to Pay $220m For Selling Drivers' Private Data", October 29, 2026

7. Federal contracting: GSA audits contracts held by 689 firms suspended from SBA's 8(a) program

TLDR: On October 21, GSA and the SBA announced that GSA is auditing federal contracts held by 689 firms that were suspended from the SBA's 8(a) Business Development Program. The SBA found that hundreds of participants had not demonstrated compliance but had received benefits, procurement priority and contracts with a combined ceiling of $5.5 billion. GSA says it will refer suspected fraud to the Office of Inspector General and the Department of Justice.

Do this week: If you hold or are chasing set-aside work (8(a), HUBZone, women-owned, veteran-owned), check that your SAM.gov registration, size status and certification records are current and match what you claimed in past offers. Keep the evidence where you can find it. For honest small bidders, closer scrutiny of set-asides is not a reason to stop bidding. Registering on SAM.gov is free.

Source: GSA, "GSA Launches Sweeping Fraud Audit of Nearly 700 Federal Contractors in Collaboration with Small Business Administration", October 21, 2026

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