In the wake of various high-profile instances of perceived breaches in conduct, the Competition and Markets Authority (CMA) has published a guide to the discount and reference pricing principles of selling mattresses online, which can be viewed here.
"These principles are intended to help traders in the online mattress sector understand and comply with their existing obligations under consumer protection law when making price reduction claims online," states the CMA.
The guide explores offer durations and volumes, and the implications of failing to comply with the law.
The CMA concedes that "the use of reference pricing is complex", and says it will "continue to look into traders’ practices and to take action to tackle harmful practices where required in the future. This may include issuing further principles or guidance".
Emma is currently facing the possibility of court action unless it changes its approaches (see related), while Simba has signed undertakings in relation to its online selling practices, committing to, among other things, an agreed set of rules around the use of discount claims and urgency claims (such as countdown clocks).
Simba CEO Steve Reid comments: “At Simba, we are committed to developing sleep technology to help ensure that consumers have the opportunity for their best night's sleep. Simba’s historic promotional activity of products reflected that of the wider industry.
"Simba has welcomed the CMA’s involvement in the sector and wider online choice architecture, and has been working closely with them across 2024 to ensure Simba continues to uphold industry-leading, transparent and fair consumer practices now, and moving forwards.
"Our vision is to be the world’s most innovative sleep tech brand and also the most responsible. We are very pleased to have worked with the CMA to set new standards for online price promotions. We would urge others in the sector to work collaboratively with the CMA to ensure that they update their business practices as soon as possible, to reflect the CMA’s new standards and in order to enhance their consumer proposition.”
