The UK’s Competition and Markets Authority (CMA) has initiated investigations into eight companies amid a review of online pricing practices. This marks the first application of the CMA’s new consumer protection powers. The companies under scrutiny include StubHub, Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct, and Marks Electrical.
In conjunction with these investigations, the CMA is also reaching out to 100 businesses across 14 sectors to express concerns regarding their pricing strategies, specifically the use of additional fees and sales tactics.
According to Sarah Cardell, chief executive of the CMA, it is essential for consumers to shop online with confidence, ensuring that the prices advertised are the final prices consumers will pay. The announcement aligns with an ongoing review that began in April and examines over 400 businesses to determine compliance with pricing transparency regulations.
Following the enactment of the Digital Markets, Competition and Consumers Act last year, the CMA has acquired the ability to address anti-competitive behavior directly, without needing to involve the courts. Under these new powers, the CMA can determine if any consumer laws have been violated, require businesses to compensate affected customers, and impose fines of up to 10% of a company’s global turnover.
The CMA’s investigations will specifically evaluate practices such as pressure selling, drip pricing, and misleading countdown clocks. Drip pricing refers to instances where consumers are initially shown a price that does not include additional fees, which are revealed later in the checkout process.
The businesses contacted by the CMA span diverse sectors, including holidays, homeware, transportation, fitness, and food delivery.
Source: https://www.bbc.com/news/articles/cd7rq9dvy59o?at_medium=RSS&at_campaign=rss