Watchdog launches investigation into eight firms including Wayfair over online pricing
Racing watchdog StubHub has launched an investigation into Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical over their online pricing practices.
The Competition and Markets Authority (CMA) said the proceedings were the first to be launched using new consumer protection powers and followed a “cross-economy” review into online pricing and sales practices.
The watchdog said it had also written to 100 businesses across 14 sectors expressing concerns about the use of surcharges and sales tactics.
Sarah Cardell, CMA chief executive, 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 any sale is real.
“Whether you spend your hard-earned money on concert tickets, driving lessons, joining a gym, or buying furniture and appliances for your home, you deserve a fair deal.
“It’s our job to protect consumers from misleading prices and illegal pressure-based sales, and today represents an important milestone as we take action across the economy to ensure businesses do the right thing for their customers.
“Since the introduction of the new regime, we have been working hard to help businesses understand the law. But as well as supporting businesses to comply with the law, we have always been clear that we will take action quickly where we suspect potentially serious breaches of the law.
“This is just the beginning of our work. Any business that breaks consumer law should have no doubt that we will stamp out illegal behavior and protect the interests of consumers and businesses that deal fairly.”
The CMA said it had launched an investigation into eight firms because it had “reason to suspect” they were breaching consumer law in relation to the use of fees, misleading time-limited offers or automatically signing consumers up for optional fees.
Two of the companies — secondary ticket sites StubHub and Viagogo — are under scrutiny over mandatory surcharges imposed when consumers purchase tickets and whether those fees are included up front.
The watchdog said AA Driving School and BSM Driving School were being investigated for mandatory fee presentation on their sites, specifically whether these fees were included in the total price the consumer sees at the beginning of the purchasing process.
Gold’s Gym is under investigation for whether the way it offers a one-time joining fee for its annual membership is unlawful, by specifically offering this fee as part of the registration process and not including it in advertised membership costs.
The watchdog said it is investigating Wayfair for time-limited sales, Marks Electrical for default engagements, and Appliances Direct for time-limited sales and default engagements.
The CMA said it had not reached any conclusions about whether the law had been broken in any of these investigations.
