CMA issues fine to Marks Electrical for pre-selected charges

The Competition and Markets Authority (CMA) found that Marks Electrical pre-selected and charged customers for extra services without their agreement for a range of essential household items.

Customers were automatically opted into one of two services:

• ‘Recycle Old Appliance’ service: removing the customer’s old appliance at the time of delivery, which is then recycled
• ‘Unwrap & Recycle Packaging’ service: unwrapping and removing packaging for the newly purchased product or products at the time of delivery, which is then recycled

Consumer law makes it clear that consumers must have a genuine choice over whether to pay for an extra product or service which they may or may not choose.

Following the CMA’s new powers that came into force under the Digital Markets, Competition and Consumers Act 2024 (DMCCA) the CMA imposed Marks Electrical with a fine of £1.2 million, reduced by 40% to £720,000 to reflect cooperation and easy settlement.

If a business infringes consumer protection law, the CMA can fine it up to 10% of its global turnover (or £300,000 where this is higher than the 10% figure).