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The UK’s competition authority, the Competition and Markets Authority (CMA), has launched investigations into eight companies, encompassing ticket resellers and driving schools, as part of a broader review targeting online pricing methods. These are the first inquiries initiated by the CMA under recently granted consumer protection powers. They focus on business practices including mandatory additional charges, sales limited by time, and the use of automatic opt-ins.
The companies under scrutiny include StubHub, Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct, and Marks Electrical. Alongside these investigations, the CMA has reached out to 100 other businesses across various sectors to express concerns about their pricing strategies and sales techniques, highlighting potential non-compliance.
Sarah Cardell, CMA’s chief executive, emphasized the importance of transparent pricing, particularly as many households face ongoing financial pressures. She stated, “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.” This announcement follows an extensive review initiated in April, examining over 400 businesses to determine adherence to price transparency regulations.
Thanks to new authorities granted by the Digital Markets, Competition and Consumers Act introduced last year, the CMA can now directly assess breaches of consumer law without resorting to court proceedings. The regulator has the power to order companies to compensate customers and impose fines of up to 10% of a company’s global revenue. Specific issues under investigation include pressure selling, drip pricing—where the initial price is presented upfront but additional fees appear late in the checkout process—and misleading countdown timers meant to create urgency.
Regarding the focus on the eight companies, the CMA outlined the following concerns: StubHub and Viagogo are being examined for imposing mandatory additional fees on ticket purchases. AA Driving School and BSM Driving School face scrutiny over how they present mandatory charges, particularly whether these fees are disclosed early enough during the purchase process. Gold’s Gym is under review for how it communicates a one-time joining fee within its annual membership offer, with concerns about fees appearing midway through sign-up rather than being included in advertised prices. Wayfair is being investigated for potential discrepancies regarding the actual end times of its time-limited sales. Marks Electrical is suspected of automatically enrolling customers into extra services, a practice also being examined in Appliances Direct.
The CMA has made it clear that no determinations have yet been made regarding any unlawful behavior by the companies involved. AA Driving School and BSM Driving School, which operate under Automobile Association Developments Limited, issued a statement reaffirming their confidence that their £3 booking fee is transparent and complies with CMA requirements, noting they have already taken steps to notify customers earlier in the booking process. A spokesperson for Viagogo commented on their ongoing cooperation, saying, “We have continually engaged constructively with the CMA and will be fully cooperating with their investigation.
Read the full article from The BBC here: Read More
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