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The Competition and Markets Authority has opened investigations into eight businesses over their online pricing practices.
StubHub, viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical are all being probed, it was announced on Tuesday.
The watchdog has also written advisory letters to 100 businesses across 14 sectors outlining concerns about their use of additional fees and sales tactics.
The CMA said it had concerns over practices including drip pricing and the use of misleading countdown timers, which are banned under the new consumer protection regime.
The cases are the first launched by the CMA under its new consumer protection powers which allows the authority to enforce consumer law directly against businesses without going to court.
If it decides the companies have infringed on the law, the CMA can now order businesses to pay compensation to affected customers as well as fining companies up to 10 per cent of global turnover.
Since April the CMA has reviewed more than 400 businesses to assess whether companies are following the rules about clearly showing prices without hidden fees.
Secondary ticketing sites StubHub and viagogo are being investigated over mandatory charges which are added on when customers buy tickets from the sites – and whether or not the fees are included up front.
AA Driving School and BSM Driving School are being investigated on how booking fees are shown on their websites and whether the fees are included at the beginning of the purchase process.
Secondary ticketing site StubHub is one of eight companies being investigated in a new CMA probe
Gold’s Gym is under investigation over its presentation of a one-off joining fee for its annual membership, and whether the way it presents this fee breaks the law – specifically, introducing it part way through the sign-up process and not including it in advertised membership costs.
Homeware retailers Wayfair, Appliances Direct, and Marks Electrica are also being investigated.
Wayfair are being probed over whether time limited sales on their website actually end when the website says it would.
Marks Electrical are being looked at over whether customers are being automatically opted in to purchasing additional services.
Appliances Direct are being investigated over both time-limited sales and default opt-ins.
Sarah Cardell, Chief Executive of the CMA, said: ‘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.
‘Whether you’re spending your hard-earned cash on concert tickets or driving lessons, joining a gym or buying furniture and appliances for your home, you deserve a fair deal.
‘It’s our job to protect consumers from misleading prices and illegal pressure selling and today marks an important milestone as we take action across the economy to make sure businesses do the right thing by their customers.
AA Driving School is being investigated on how booking fees are shown on their websites
‘Since the launch of the new regime, we’ve been working hard to help businesses understand the law. But alongside supporting businesses to comply, we’ve always been clear that we will take swift action where we suspect potentially serious breaches of the law.
‘This is just the start of our work. Any businesses who break consumer law should be in no doubt we will stamp out illegal conduct and protect the interests of consumers and fair-dealing businesses.’
The CMA has also targeted sectors where it has potential concerns
An AA Driving School spokesperson said: ‘We are comfortable that the £3 booking fee for lessons is already transparent and in line with the CMA’s rules and are more than happy to additionally notify customers earlier in the journey as well, which we have already done.’
A spokesperson for viagogo said: ‘We have continually engaged constructively with the CMA and will be fully cooperating with their investigation.’
This is a breaking news story. More to follow.
