UK’s Competition and Markets Authority (CMA) Takes Action Against Eight Companies for Online Pricing Concerns!
Exciting news! Eight companies are now facing a formal investigation by the CMA due to worries about their online pricing strategies. This marks the regulator’s first major move using its new consumer protection powers.
The companies under scrutiny include StubHub, Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct, and Marks Electrical. They’re being looked at as part of a thorough review of how businesses present their online prices. Plus, the CMA is reaching out to around 100 more companies to alert them about potential issues tied to extra fees, pressure selling, and misleading sales tactics.
CMA chief executive Sarah Cardell emphasized that consumers deserve to trust that the prices they see online are honest and complete.
“With household budgets tight and everyone looking for the best deal, it’s essential that people can shop online confidently, knowing the price they see is the price they’ll actually pay,” she said. “All sales must be genuine!”
This wave of investigations follows a significant review started in April, where the CMA examined price transparency practices across more than 400 businesses. The regulators are particularly worried about “drip pricing”, where customers initially see a low price but are hit with extra fees during checkout, as well as pressure tactics like countdown clocks.
These cases are the first to be launched under the new Digital Markets, Competition and Consumers Act from last year, which gives the CMA powerful tools to enforce consumer rights. Now, they can decide by themselves if laws have been broken—no courtroom necessary! They can also order companies to pay compensations or slap fines of up to 10% of global revenue.
While the CMA hasn’t set a timeline for these investigations just yet, more enforcement actions are likely as their review continues. The companies involved have the chance to respond, and it’s important to note that no conclusions about breaches have been made yet.
