The Competition and Markets Authority (CMA) has fined 3 businesses £6m for misleading sales tactics – including Wayfair UK, which was fined £4.8m for false time-limited offers.
Having admitted to breaking the law and agreeing to settle the case early with the CMA, which allows the CMA to resolve cases faster and get refunds back to consumers more quickly, Wayfair – and Appliances Direct and Gold’s Gym – received a 40% reduction in their fines.
Hayley Fletcher, senior director for consumer protection at the CMA, says: "Whether buying a new sofa, a washing machine, or joining a gym, people should see genuine, accurate prices and offers – and decide for themselves whether they want optional extras. At a time when many households are carefully managing their budgets, people shouldn’t lose out because of misleading sales tactics.
"The time is up for this kind of behaviour. Businesses must treat their customers fairly and make sure they comply with the law – or risk hefty fines.
The CMA’s investigation found that products were advertised on Wayfair’s website through ‘Daily Deals’ and 24-hour ‘Flash Deals’, alongside messages such as ‘Here Today, Gone Tomorrow’ and countdown timers, which implied customers needed to act quickly to get the best deal. But the CMA’s investigation found that many products remained available at the same price or lower after the stated deadline – so the time-limited offer was false. By stating these were one-day offers, people could have felt pressure to make a quick purchase so as not to lose out.
The CMA says the investigation forms part of the its wider work to help ease cost of living pressures. Since its strengthened consumer powers came into force – which allow it to fine companies for breaches and secure refunds – the CMA has launched investigations across ticketing, gyms, homewares, online reviews and air travel. In the last 18 months, the CMA has imposed fines of more than £12m and secured nearly £2.4m in refunds for customers using its new consumer protection enforcement powers.
