The UK's competition regulator has initiated a major crackdown on misleading online pricing, launching investigations into eight prominent companies. The Competition and Markets Authority (CMA) is using its new consumer protection powers for the first time to probe firms including ticket resellers StubHub and Viagogo.
New Powers Target Deceptive Sales Tactics
The CMA announced it is examining concerns over several problematic practices. These include drip pricing, where customers are shown an initial price only to face unexpected additional fees at checkout. The watchdog is also scrutinising the use of misleading countdown timers, a tactic now banned under the new consumer regime.
This action follows a comprehensive, cross-economy review conducted since April, where the CMA assessed more than 400 businesses across 19 different sectors for compliance with price transparency rules. Alongside the formal investigations, the regulator has sent advisory letters to 100 other businesses across 14 sectors, warning them about their use of additional fees and sales tactics.
Which Companies Are Under Investigation?
The eight companies facing formal CMA investigations are:
- StubHub and Viagogo: Investigated for mandatory additional charges applied during ticket purchases and whether these fees are displayed clearly upfront.
- AA Driving School and BSM Driving School: Probed over whether their mandatory fees are included in the total price shown at the beginning of the purchase process.
- Gold's Gym: Under review for not including its one-off joining fee in its advertised annual membership costs.
- Wayfair, Appliances Direct, and Marks Electrical: Investigated to determine if their time-limited sales ended when advertised and whether customers were automatically opted into buying additional services.
Sarah Cardell, Chief Executive of the CMA, stated: "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."
Significant Consequences for Non-Compliance
This marks a significant shift in the CMA's enforcement capabilities. The regulator's new powers allow it to directly decide if consumer law has been broken, bypassing the need for a court process. If the CMA finds an infringement, it can order businesses to pay compensation to affected customers and can impose substantial fines of up to 10% of a company's global turnover.
Rocio Concha, Director of Policy and Advocacy at the consumer group Which?, welcomed the action, saying: "It's encouraging that the regulator is taking this action. It shouldn't hesitate to use its new consumer enforcement powers to fine any firms that have broken the rules."
The investigation adds to existing pressure on Viagogo and StubHub. The latter saw its shares fall nearly 14% after the Guardian revealed the government plans to outlaw reselling tickets for profit. In response to the investigation, an AA Driving School spokesperson said they were "comfortable" their £3 booking fee was transparent, while Viagogo confirmed it would "fully cooperate" with the probe.
