Competition watchdog investigating eight firms over online pricing
Eight companies, including ticket sellers and driving schools, have been investigated by the UK’s competition regulator as part of a review into online pricing practices.
The cases are the first brought by the Competition and Markets Authority (CMA) under its new consumer protection powers.
Companies examined are StubHub, Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical.
The CMA is also sending a letter to 100 businesses to outline their concerns about surcharges and the use of sales tactics.
CMA chief executive Sarah Cardell said: “At a time when household budgets are under constant pressure and we are all looking for the best deal possible, it is crucial that people can shop online with confidence knowing that the price they see is the price they will pay and all sales are genuine.”
The announcement follows a major review, which has been running since April, examining more than 400 businesses across the economy to examine whether rules on price transparency are being met.
Within the Scope of the Digital Markets, Competition and Consumers Law was introduced last yearThe CMA has the power to combat anti-competitive behavior.
Instead of going to the courts, consumers will now be able to decide whether or not consumer laws have been violated.
It could order businesses to pay compensation to affected customers and fine companies up to 10% of global turnover.
The CMA said it was investigating practices such as pressure selling, drop pricing and misleading countdown clocks as part of its investigations.
Drop pricing occurs when shoppers are shown the starting price for a product or service on a website, only to see additional fees revealed later in the checkout process.
