"Eight companies are under formal investigation by the UK's Competition and Markets Authority (CMA) over concerns about online pricing tactics, marking the regulator's first major enforcement action under its strengthened consumer protection powers. The firms - StubHub, Viagogo, AA Driving School, BSM Driving School, Gold's Gym, Wayfair, Appliances Direct and Marks Electrical - are being examined as part of a wide-ranging review into how businesses display and structure online prices."
"The cases are the first to be opened under the Digital Markets, Competition and Consumers Act, introduced last year, which gives the CMA unprecedented enforcement powers. The watchdog can now determine for itself whether consumer law has been broken - without taking cases to court - and can order firms to pay compensation or impose fines of up to 10% of global turnover."
"The CMA is also writing to a further 100 companies to warn them about potential breaches relating to additional fees, pressure selling and misleading sales tactics. Regulators are particularly concerned about 'drip pricing', where customers are shown a low initial price but encounter additional fees only during checkout, and about the use of countdown clocks and other pressure-based selling tactics."
Eight companies, including StubHub, Viagogo, AA and BSM Driving Schools, Gold's Gym, Wayfair, Appliances Direct and Marks Electrical, are under formal CMA investigation over online pricing tactics. The CMA is also notifying about 100 additional businesses about potential breaches concerning additional fees, pressure selling and misleading sales tactics. Regulators are focused on 'drip pricing' and the use of countdown clocks to pressure consumers. The inquiries follow a review of over 400 businesses. New powers under the Digital Markets, Competition and Consumers Act allow the CMA to enforce remedies, order compensation, and impose fines up to 10% of global turnover.
Read at Business Matters
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