Britain’s competition watchdog has opened investigations into a string of big-name brands over their online pricing practices.
The Competition and Markets Authority has launched probes into the online pricing strategies of AA Driving School, BSM Driving School, Appliances Direct, StarHub, Gold’s Gym, Marks Electrical, Viagogo and Wayfair.
The investigations were the first opened using the CMA’s new consumer protection powers and followed a ‘cross-economy’ review of online pricing and sales practices.
The CMA said it launched investigations into the eight firms because it had ‘reason to suspect’ they had infringed consumer law in respect of their use of fees, misleading time-limited offers or automatically opting consumers in for optional charges.
The watchdog said it was investigating the AA Driving School and BSM Driving School over their presentation of mandatory fees on their websites, specifically whether these fees were included in the total price the consumer sees at the beginning of the purchase process.
Two of the companies, secondary ticketing sites StubHub and Viagogo, are under review regarding the mandatory additional charges applied when consumers buy tickets, and whether or not these fees were included upfront.
Probes: Britain’s competition watchdog has opened investigations into a string of big-name brands over their online pricing practices
Gold’s Gym is under investigation over its presentation of a one-off joining fee for its annual membership, and whether the way it presented this fee broke the law, specifically introducing it part way through the sign-up process and not including it in advertised membership costs.
The watchdog said its Wayfair probe centred on time-limited sales, while its investigation into Marks Electrical would focus on default opt-ins.
Appliances Direct is being scrutinised for its use of time-limited sales and default opt-ins, the CMA added.
The CMA said it has reached no conclusions about whether the law had been broken in any of these investigations.
If the CMA finds there has been an infringement of the law, it could order businesses to pay compensation to affected customers as well as fine companies up to 10 per cent of their global turnover.
The watchdog said it was also writing to 100 businesses across 14 sectors outlining concerns about their use of additional fees and sales tactics.
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.
‘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.’
She added: ‘It’s our job to protect consumers from misleading prices and illegal pressure selling and today marks an important milestone as we take action across the economy to make sure businesses do the right thing by their customers.’
Cardell said the CMA would ‘take swift action where we suspect potentially serious breaches of the law.’
She continued: ‘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.’
Since April, the CMA has been conducting a ‘cross-economy’ review of more than 400 businesses in 19 different sectors to assess compliance with rules on price transparency.
An AA Driving School spokesman said: ‘We are comfortable that the £3 booking fee for lessons is already transparent and in line with the CMA’s rules, and are more than happy to additionally notify customers earlier in the journey as well, which we have already done.’
A Viagogo spokesman said: ‘We have continually engaged constructively with the CMA and will be fully cooperating with their investigation.’
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