UK Watchdog Investigates Eight Businesses Over Suspected Pricing Abuses

The firms under scrutiny span several sectors, including ticket resale platforms StubHub and Viagogo, driving schools AA Driving School and BSM Driving School, fitness chain Gold’s Gym, and retailers Wayfair, Appliances Direct and Marks Electrical. Per the BBC, the CMA is examining whether practices such as compulsory add-on fees, automatically applied extras, and sales that appear time-limited are misleading shoppers.

The regulator said it is also contacting around 100 additional companies to warn them about concerning pricing methods highlighted during a wide-ranging review that began in April. That review assessed more than 400 businesses to determine whether they are complying with rules on clear and transparent pricing.

CMA chief executive Sarah Cardell emphasized the importance of protecting consumers facing rising costs, stating: “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.”

Under the Digital Markets, Competition and Consumers Act introduced last year, the watchdog gained expanded authority to rule directly on whether consumer laws have been breached, without going through lengthy court processes. It can now order compensation for affected customers and issue fines of up to 10% of a company’s global turnover.

The CMA confirmed it is focusing on practices such as pressure selling, misleading countdown timers, and particularly drip pricing — a method where customers only see the full cost of a product or service late in the checkout process. According to the BBC, the regulator sees these tactics as contributing to confusion and undermining confidence in online shopping.

The CMA said further updates on the ongoing investigations are expected next March.

Source: BBC