Wayfair, Appliances Direct and Gold's Gym fined £6m for misleading sales tactics

Summarised from 5 outlets · 6 reports · Updated 14 Oct, 12:29 · Archive

The Competition and Markets Authority has fined three firms £6m total for misleading customers with false time-limited offers and unclear pricing.

The Competition and Markets Authority has fined three major firms £6m in total for misleading customers with deceptive sales tactics.

Wayfair was fined £4.8m for false time-limited offers. The CMA found that products were advertised as 'Daily Deals' and 24-hour 'Flash Deals' with messages such as 'Here Today, Gone Tomorrow' and countdown timers. Many of these products remained available at the same price or lower after the stated deadline. The watchdog said customers may have felt pressured to make quick purchases to avoid missing out.

Appliances Direct was fined £1.2m for similar misleading time-limited offers and ordered to refund customers approximately £432,000. The retailer also automatically opted customers into paid-for extras without clear consent.

Gold's Gym was fined between £45,000 and £48,000 and ordered to refund approximately £9,000 to customers. The gym failed to clearly display the total price of memberships, including joining fees, in a timely manner.

In total, customers of Appliances Direct and Gold's Gym will receive around £440,000 in refunds. The CMA said both firms would contact affected customers directly, and no action is required from customers to receive their refunds.

All three companies admitted to breaking the law and agreed to settle the case early with the CMA, which resulted in a 40 per cent reduction in their fines. Hayley Fletcher, senior director for consumer protection at the CMA, said: 'Whether buying a new sofa, a washing machine, or joining a gym, people should see genuine, accurate prices and offers – and decide for themselves whether they want optional extras.' She added that at a time when households were managing budgets carefully, people should not lose out due to misleading sales tactics, and that businesses must comply with the law or face substantial penalties.

How it is being reported

• Wayfair among firms hit with £6m fine for ‘misleading’ sales tacticsOnline 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 [...]City AM · 14 Oct, 12:18
• Wayfair fined £4.8m for 'false' time-limited deals while Appliances Direct and Gold's Gym ordered to pay back customersThe firms have been fined by the competition watchdog for infractions such as advertising false 'flash' deals and not being clear about joining fees.This is Money · 14 Oct, 11:48
• Wayfair and Appliances Direct among firms fined £6m for misleading sales tacticsCustomers of Appliances Direct and Gold’s Gym will receive about £440,000 in refunds as a result of the action.Evening Standard · 14 Oct, 10:54
• Wayfair and Appliances Direct among firms fined £6m for misleading sales tacticsCustomers of Appliances Direct and Gold’s Gym will receive about £440,000 in refunds as a result of the action.Independent Business · 14 Oct, 10:36
• Wayfair and Appliances Direct among firms fined £6m for misleading sales tacticsCustomers of Appliances Direct and Gold’s Gym will receive about £440,000 in refunds as a result of the action.Evening Standard · 14 Oct, 10:36
• Wayfair among firms fined millions for misleading sales tacticsThe Competition and Markets Authority has fined Wayfair, Appliances Direct, and Gold's Gym £6m in total.BBC News · 14 Oct, 10:24

In this story: Wayfair · Appliances Direct · Gold's Gym · Competition and Markets Authority · Hayley Fletcher

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