The UK’s competition watchdog has fined three companies a total of £6 million for using misleading sales tactics. Wayfair received the largest penalty of £4.8 million, while Appliances Direct was fined £1.2 million. Both were penalized for employing deceptive time-limited offers to customers.
Gold’s Gym was also fined £48,000 for failing to disclose the full cost of its memberships. In addition to the fines, Appliances Direct and Gold’s Gym have been ordered to issue refunds totaling £440,000 to affected customers. The refunds for Appliances Direct customers will average £25, and for Gold’s Gym customers, they will be up to £50.
Wayfair and Appliances Direct have stated that they believe the fines imposed by the Competition and Markets Authority (CMA) are disproportionate. The CMA confirmed that customers do not need to take any action, as the companies will directly contact those eligible for refunds. Appliances Direct must issue refunds by March 11, and Gold’s Gym by March 29.
The CMA noted that all three companies cooperated with the investigation, admitting to breaking the law and agreeing to an early settlement. This cooperation resulted in a 40% reduction in their respective fines. The investigation was initiated in November of the previous year, focusing on online pricing practices.
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Source: bbc.co.uk
