The Competition & Markets Authority (CMA) has launched a sweeping crackdown on online pricing tactics, opening investigations into eight companies as it enforces new powers under the Digital Markets, Competition and Consumers Act.
The regulatory body said it had uncovered widespread concerns around drip pricing, hidden fees and misleading countdown timers following a cross-economy review of more than 400 businesses across 19 sectors.
It found potential compliance issues in 14 industries ranging from ticketing and homewares to gyms, driving schools and delivery services.
The first wave of enforcement cases will examine suspected breaches by StubHub, viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical.
Homewares retailers Wayfair, Appliances Direct and Marks Electrical are being examined over time-limited sales claims and default opt-ins at checkout, however the CMA stressed it has not reached any conclusions about wrongdoing.
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Alongside formal action, the watchdog has issued warning letters to 100 businesses across travel, ticketing, fitness, food delivery, parcel services, fashion and homewares, urging them to review their pricing practices in line with transparency rules.
The CMA has also published final guidance to help businesses comply with updated pricing laws, adding that hidden mandatory fees and misleading headline prices remain unlawful under consumer protection rules.
CMA chief executive Sarah Cardell 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.”
She added: “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 letters span across high-spend sectors including holidays, rail travel, parking, food delivery, parcel services, cinemas, live events and online vouchers, all areas where the CMA said hidden fees can “add up fast”.
Under the DMCCA, the regulator can now directly determine breaches and impose penalties of up to 10% of a company’s global turnover, as well as order compensation.
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