Britain's competition watchdog has fined three retailers a combined £6m for using misleading sales practices. The Competition Markets Authority (CMA) said Wayfair was fined £4.8m for falsely advertising time-limited offers, while Appliances Direct received a £1.2m penalty for the same conduct. Gold's Gym was fined £48,000 for failing to disclose the full cost of gym memberships to customers.
Affected customers will receive compensation totalling £440,000. Appliances Direct customers will get average refunds of £25 each, while 726 Gold's Gym members will receive up to £50 each. The companies have been ordered to contact customers directly about refunds, with Appliances Direct required to pay by 11 March and Gold's Gym by 29 March.
The CMA launched its investigation last November into online pricing practices. It found that Wayfair and Appliances Direct kept many products at the same price or cheaper after their supposed sales deadlines, meaning the time-limited offers were false. Appliances Direct also automatically enrolled customers into paid services like recycling schemes without clear consent.
All three companies admitted to breaking consumer protection laws and agreed to settle early, which reduced their fines by 40 per cent, the CMA said. Hayley Fletcher, senior director for consumer protection at the CMA, stated that households managing tight budgets should not suffer because of deceptive practices, and that businesses risked significant penalties for non-compliance.