Investigations have commenced into the pricing practices of eight companies online, with an additional 100 businesses slated to receive warnings. The firms under scrutiny include StubHub, Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct, and Marks Electrical.
The Competition and Markets Authority (CMA) is examining how fees are displayed online, potential misrepresentation of time-limited offers, and the automatic inclusion of optional charges for consumers. Specific areas of focus include secondary ticket selling platforms like StubHub and Viagogo, which are being investigated for additional charges related to ticket purchases.
Moreover, AA Driving School and BSM Driving School are under investigation for the transparency of fee presentation on their websites, particularly concerning the timing of fee disclosures during the purchasing process. Gold’s Gym is also being scrutinized for the way it introduces a one-off joining fee for annual memberships midway through the sign-up process.
Wayfair is being looked into regarding time-limited sales, Marks Electrical is facing an inquiry over default opt-ins, and Appliances Direct is being investigated for their use of time-limited sales and default opt-ins.
The CMA emphasized that these investigations are based on suspicions of consumer law violations, with no final decisions made yet. These cases mark the initial deployments of the CMA’s new consumer protection powers, with the watchdog also planning to contact 100 businesses to address concerns about additional fees and sales strategies.
In a statement, CMA chief executive Sarah Cardell stressed the importance of ensuring consumer confidence in online shopping by guaranteeing transparent pricing and fair sales practices across various sectors. Cardell reaffirmed the CMA’s commitment to enforcing consumer protection laws and promoting fair dealings between businesses and consumers.
Representatives from AA Driving School and Viagogo expressed willingness to cooperate with the CMA’s investigations, ensuring compliance with regulations. The Mirror has reached out to Gold’s Gym, Wayfair, Marks Electrical, and Appliances Direct for their comments, while noting the affiliations among BSM Driving School, AA, Viagogo, and StubHub under the same parent company.
