Wayfair among firms hit with £6m fine for ‘misleading’ sales tactics
Online retail giant Wayfair is among three firms fined £6m by the competition watchdog for misleading sales tactics. The Competition and Markets Authority (CMA) said on Wednesday it fined Wayfair £4.8m for misleading customers with false limited-time offers that did not end when they said they would. This follows an investigation in which the CMA [...]
The Competition and Markets Authority (CMA) levied a £6 million fine on three firms for engaging in misleading sales tactics. Wayfair, an online retail giant, was fined £4.8 million for providing false limited-time offers through 'Daily Deals' and 'Flash Deals' on its website. The CMA found that many products remained available at the same price or lower after the stated deadline, making the time-limited offers deceptive.
The watchdog also fined Appliances Direct £1.2 million and Gold's Gym £45,000, requiring them to refund customers around £432,000 and £9,000, respectively. The CMA deemed all three firms as having admitted to breaking the law and agreeing to settle the cases early, resulting in a 40% reduction in fines. The CMA's senior director for consumer protection, Hayley Fletcher, emphasized that customers should receive accurate prices and offers and make informed decisions about optional extras.
She warned that such misleading practices would no longer be tolerated, and businesses needed to treat customers fairly or face substantial fines. Wayfair responded to the fine, stating they believed the penalty to be excessive and disproportionate but chose to settle to focus on serving their customers. Appliances Direct and Gold's Gym were also available for comment.
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