CMA Launches Investigations Into Online Businesses Over Consumer Law Concerns

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The UK’s Competition and Markets Authority (CMA) has opened formal investigations into eight businesses suspected of breaching consumer law in their online sales practices. These actions, part of the CMA’s first enforcement under strengthened online consumer protection rules, focus on issues such as the use of additional fees, misleading time-limited offers, and the automatic opt-in of consumers for optional charges.

Among the eight firms under investigation are secondary ticketing platforms StubHub and Viagogo, which are being scrutinized over mandatory additional charges applied to ticket purchases and whether such fees are clearly included in upfront pricing. AA Driving School and BSM Driving School are also under review for how they present mandatory fees during the booking process, specifically whether these fees are visible in the total price displayed to consumers at the start of the purchase.

Gold’s Gym is being investigated regarding its presentation of a one-off joining fee for annual memberships, which may be introduced partway through the sign-up process rather than being included in advertised membership costs. Meanwhile, homeware retailers Wayfair, Appliances Direct, and Marks Electrical are under review for potential misuse of time-limited sales promotions and default opt-ins. The CMA is assessing whether Wayfair’s sales ended as advertised, whether Appliances Direct implemented misleading time-limited promotions or default opt-ins, and whether Marks Electrical automatically opted consumers into additional services without proper consent.

At this stage, the CMA has not concluded that any of the eight businesses have violated consumer law. The investigations are intended to clarify whether these online sales practices comply with the law and to protect consumers from misleading or unfair pricing tactics.

In addition to these formal probes, the CMA has sent advisory letters to 100 businesses, highlighting concerns about online sales practices, particularly the use of additional fees and other potentially unfair tactics. These letters urge companies to review their practices to ensure compliance with consumer protection law.

CMA Chief Executive Sarah Cardell stated, “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.”