Wayfair and Appliances Direct have been fined a combined £6 million by the Competition and Markets Authority for ‘misleading customers with time-limited offers’.
The homewares retailers were among three businesses penalised by the watchdog for breaching consumer protection laws, with customers set to receive around £440,000 in refunds.
Wayfair was handed a £4.8 million fine after the CMA found that products advertised through its ‘Daily Deals’ and 24-hour ‘Flash Deals’ remained available at the same price or cheaper after the promotions supposedly ended.
It had used countdown timers and messages such as ‘Here Today, Gone Tomorrow’, which the regulator said could have pressured shoppers into making purchases.
Meanwhile, Appliances Direct was fined £1.2 million after the watchdog found it had used misleading countdown banners advertising discounts of £10 to £25, despite the same promotional codes appearing repeatedly over several days.
The electricals brand was also found to have automatically opted customers into paid-for services, including appliance installation and recycling, without obtaining their express consent.
It has been ordered to refund around £432,000 to affected customers, with average payouts of £25.
Gold’s Gym was also fined £45,000 and ordered to refund £9,220 to 726 customers after failing to clearly display mandatory joining fees in its membership prices.
All three businesses admitted breaching consumer law and agreed to settle their cases early, securing a 40 per cent reduction in their fines.
CMA senior director for consumer protection Hayley Fletcher said: “Businesses must treat their customers fairly and make sure they comply with the law – or risk hefty fines.”
The penalties were imposed under the regulator’s strengthened powers introduced through the Digital Markets, Competition and Consumers Act 2024, which allow it to fine businesses up to 10 per cent of their global turnover for consumer law breaches.
Over the past 18 months, the CMA has imposed more than £12 million in fines and secured almost £2.4 million in customer refunds as part of its crackdown on misleading commercial practices.
The watchdog has also launched investigations across sectors including retail, ticketing, online reviews and travel as it steps up enforcement of consumer protection rules.
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