LONDON, Nov. 18 -- The government of the United Kingdom issued the following news:

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Investigations opened into StubHub, viagogo,AADrivingSchool,BSM Driving School, Gold's Gym, Wayfair, Appliances Direct and Marks Electrical

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Cases arethefirst launched by the CMA using its new consumer protection powers and follow a cross-economy review ofonline pricingand salespractices

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CMAiswritingto 100 businesses across14sectors outlining concerns about their use ofadditionalfeesandsalestactics

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New guidance to help businessescomply withthe lawon price transparencyalso published

TheCompetition and Markets Authority (CMA)is announcing a major package of actioncoveringonlinepricing practices,includingdrip pricingand pressure selling,under the newDigital Markets, Competition and Consumers Act 2024(DMCCA).This move will ensure people can shop with confidence and fair-dealing businesses can compete on a level playing field.

From the outset of the newregime,the CMA has been clear that it willact to protectconsumers, support businesses that want to do the right thing and focus earlyenforcementaction on the most egregious practiceswhichareharmful to consumers.

SinceApril,the CMA has been conducting a major cross-economy review of more than 400 businesses in 19 different sectors to assess compliance with the rules on pricetransparency.

Using the resultsof thisreview, alongsideadditionalmonitoring, the CMAidentifiedpotentialcompliance concerns in 14 sectors,includingdrip pricingandthe use ofmisleading countdown timers, which are banned under the new regime.Consumers needaccuratepricing information to know they are getting a fair deal. This is important for consumer confidence when shopping onlineandimpactseconomic growth.

The CMA is taking atwo-tierapproach based on this work - launching enforcement action and sending advisory lettersto 100businesses- while also publishing new guidance for businesses to help them complywith the law.

The investigations launched by the CMA are the first enforcement cases openedusing its new powers, which enable it todecidewhether consumer laws have been broken, rather than having to go through the courts.Ifthe CMA finds there has beenan infringementof the law, it can orderbusinesses to pay compensation toaffected customers as well as fining companies up to 10% of global turnover.

Sarah Cardell, Chief Executive of the CMA, said:

At a time when household budgets are under constant pressure andwe'reall hunting for the best deal possible,it'scrucial that peopleare able toshop online with confidence, knowing that the price they see is the pricethey'llpay,and any sales are genuine.

Whether you're spending your hard-earned cash on concert tickets or driving lessons, joining agymor buying furniture and appliances for your home, you deserve a fair deal.

It'sour job to protect consumers from misleading prices and illegal pressure selling and today marksan importantmilestoneas wetake actionacross the economy to make sure businesses do the right thing by their customers.

Sincethe launch of the new regime,we'vebeen working hard to help businesses understandthelaw.But alongsidesupporting businesses tocomply,we'vealwaysbeenclearthat we will take swift actionwhere wesuspectpotentiallyseriousbreaches of thelaw.

This is just the start of our work.Anybusinesseswho break consumer lawshould be in no doubtwewillstamp out illegal conduct andprotectthe interests ofconsumers and fair-dealing businesses.

Enforcement action

The CMA hasopened investigations into 8businessesthat it hasreason to suspect haveinfringedconsumer law in relation totheiruseoffees, use of misleading time-limited offersand/orthepractice of automatically opting consumers in for optional charges.

Two of the8firms - secondary ticketing sites StubHub andviagogo -are underreviewregardingthemandatoryadditionalchargesapplied when consumers buy tickets- and whether or notthese feesareincludedupfront.

TheAADriving SchoolandBSM Driving Schoolarebeing investigated overtheirpresentationofmandatoryfeeson these sites.Specifically,whetherthese feesare included in thetotalprice the consumer seesat the beginning of the purchase process.

Gold'sGymis underinvestigationover itspresentationof a one-off joining feefor its annual membership, and whether the way it presents this feebreaks the law-specifically, introducing it part way through the sign-up process and not including it in advertised membership costs.

Homeware retailersWayfair, Appliances Direct, and Marks Electrical -are being investigatedto determine whether theirtime-limited sales ended when they said they would,orwhether customers are being automatically opted in to purchasingadditionalservices.Specifically, the CMA is looking into the conduct of:

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Wayfair-in relationtotime-limited sales

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Marks Electrical-in relation to default opt-ins

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Appliances Direct-in relation to time-limited sales and default opt-ins

At this stage, the CMA has reached no conclusions about whether the law has beenbrokenin any of these investigations.

Advisoryletters: Businesses told to review their practices

Based on the resultsof its compliance sweeps,the CMAissendingadvisoryletters to100businesses, outlining concernsabout their use ofadditionalfeesandonlinesalestactics.

The letters target sectors wherethe CMA identifiedpotentialconcerns, as well askeyareas of spending, such as:

* holidays(including package travel) * driving schools * homeware retailers * rail travel * parking and airport parking * bus and coach travel * luggage storage providers * cinemas * live event tickets * food and drink delivery companies * letter and parcel delivery * gyms and fitness * fashion * online vouchers

These sectors collectively serve tens of millions of UK consumers every year. From January to June alone, UK residents made over 44.7 million trips overseas, spending an estimated £38.6 billion. At home, 11.5 million people belong to a gym;almost a third of all British adults- 16.7 million people - order fast food for delivery once a month or more, andone in 10 UK consumers uses secondary ticketing sites - with 72% saying they have concernsaboutadditionalfees. The postal sectors alsoservea huge quantity of the population, with10.5 billion parcels and lettersbeing delivered in 2023-2024.

What's more,areport by DBTfound that drip pricing was particularly prevalentregardingevent tickets (93%ofbusinessesreviewed), cinema tickets(69%),and gym memberships (60%)- all areas wherethe CMA hastaken actiontoday.

These lettersputbusinesseson notice. They must nowreview their practices and ensure they are in line with the law - and the CMA'spricingtransparency guidanceandunfair commercial practices guidance- to avoid the risk of future enforcement action.

The CMA will continue toengagewith those businesses toensuretheytake the steps needed tocomply withthe law - or otherwise face future enforcement action.

Guidance: Being transparent on prices

While the DMCCA has updated thelawon pricing information, certain aspects of drip pricing have long been prohibited under existing consumerlegislation.

Practicessuchasfailing toincludemandatory charges upfront, introducing unavoidable fees at checkout, and presenting misleading headline prices that exclude compulsory costs have been unlawful for years under the Consumer Protection from Unfair Trading Regulations 2008. This is why the CMA'searlyenforcement action and advisory letters focus onpossible breaches related to these issues.

Other elements of the law have only recently beenupdated, and the CMA has published its finalised price transparency guidance today,following consultationwith businesses.

Infographic: the CMA's action on online pricing and sales tactics

Image description: An overview of the CMA's action on online pricing and sales practices. To address the problem of online retailers using sales tactics which pressure consumers into buying quickly or spending more than intended, we've opened investigations into 8 businesses suspected of unfair practices. The sectors (live events, driving schools, fitness and homeware) serve millions of UK consumers every year, and hidden fees can add up fast. We've also sent 100 advisory letters to businesses, after reviewing over 400 businesses and finding concerns across 14 sectors.

Notes to editors

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Media enquiries should be directed topress@cma.gov.ukor 020 3738 6460.

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The consumer protection legislation relevant to the CMA's investigation is the DMCCA and the Consumer Contracts (Information, Cancellation and Additional Charges)Regulations 2013.

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There is no legal deadline to complete consumer investigations under the DMCCA. As with all its work, the CMA will progress this investigation at pace, whilst ensuring a robust and detailed review is conducted, and the businesses'rights of defence are respected.

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If the CMA provisionally decides that the companies have broken consumer law, it willissue what is known as a Provisional Infringement Notice (PIN). This sets out the CMA's concerns and gives businesses the opportunity to respond. However, not all cases proceed to a PIN.

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The CMA's investigation into StubHub covers the activities ofstubhub.co.uk. This is awebsite operated byTicketbis S.L.and is not connected to or affiliated with StubHubHoldingsInc.

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The CMA does not namethecompaniesit sends warning or advisory letters to.As is standard practice, it only names those firms which it opens enforcement cases against.

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Under the new consumer regime, if a company infringes consumer protection law, the CMA can finethem up to 10% of their global turnover. If a company breaches undertakings it has given the CMA, it could face fines of up to 5%ofits globalturnover -with additional daily penalties for continued non-compliance. Failure to provide information when requested (without a legitimate reason), concealing evidence, or providing false information can likewise result in a fine, with penalties of up to 1% of a business' global turnover and additional daily penalties.

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The CMA has taken significant action regarding'Online Choice Architecture', which sought to tackle potentially harmful online selling practices - and included enforcement action againstEmma Sleep,Wowcher, andSimba Sleep.

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How the investigationsunfold will depend on the nature of the evidence obtained.Investigationsmay result in a finding of unlawful conduct, the imposition of remedies, or closure of the case.

Disclaimer: Curated by HT Syndication.