CMA opens investigations into online pricing practices
The competition watchdog has opened investigations into StubHub, Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical over their online pricing practices, reports BritPanorama.
The Competition and Markets Authority (CMA) announced that these cases represent the first use of its new consumer protection powers, following a “cross-economy” review of online pricing and sales practices.
In addition to these investigations, the CMA is reaching out to 100 businesses across 14 sectors to express concerns regarding their use of additional fees and sales tactics.
CMA chief executive Sarah Cardell emphasized the importance of consumer confidence in online shopping, stating, “At a time when household budgets are under constant pressure and we’re all hunting for the best deal possible, it’s crucial that people are able to shop online with confidence, knowing that the price they see is the price they’ll pay, and any sales are genuine.”
Cardell highlighted the agency’s role in protecting consumers from misleading pricing and illegal pressure selling, describing the action taken as an important milestone aimed at ensuring that businesses uphold fair practices. She said, “This is just the start of our work. Any businesses who break consumer law should be in no doubt we will stamp out illegal conduct and protect the interests of consumers and fair-dealing businesses.”
The CMA initiated investigations into the eight firms based on “reason to suspect” that they may have violated consumer laws related to their fees, including the use of misleading time-limited offers or automatically opting consumers into optional charges.
The review specifically targets secondary ticketing sites StubHub and Viagogo concerning mandatory additional charges applied at the point of ticket purchase, assessing whether these fees were transparently communicated upfront.
Similarly, the AA Driving School and BSM Driving School are being scrutinized for how they present mandatory fees on their websites, particularly whether these charges are included in the total price visible to consumers early in the purchasing process.
Gold’s Gym is also under investigation regarding the disclosure of a one-off joining fee for its annual membership, focusing on its legality and whether it was introduced midway through the sign-up process without prior advertisement.
Further scrutiny is directed at Wayfair for its time-limited sales, while Marks Electrical and Appliances Direct are being looked into for their practices regarding default opt-ins and time-limited offers.
As of now, the CMA has made no conclusive determinations regarding any violations of law among the investigated parties.
This development marks a significant approach by the CMA to enhance consumer protection in the digital marketplace. The focus on clarity and transparency in pricing aligns with growing public demand for fair treatment in economic transactions amid rising living costs.
