CMA fined three businesses a total of £6 million over consumer protection infringements

The Competition and Markets Authority (CMA) has fined three businesses a total of £6 million for misleading sales practices and secured around £440,000 in customer refunds. The action was taken using the CMA’s new consumer enforcement powers under the Digital Markets, Competition and Consumers Act 2024, with the regulator finding that the companies used tactics that could pressure or mislead consumers when making purchasing decisions.

Wayfair received the largest penalty of £4.8 million after the CMA found that its “Daily Deals”, “Flash Deals” and countdown timer promotions falsely suggested that discounts would expire when, in many cases, the same or better prices remained available afterwards.

Appliances Direct was fined £1.2 million for similar misleading time-limited offers and for automatically opting customers into paid-for extras without obtaining their express consent. The company was also ordered to provide approximately £432,000 in refunds to affected customers.

Gold’s Gym (UK) Limited was fined £45,000 after the CMA found it failed to present mandatory joining fees clearly within the advertised membership price. The gym operator was ordered to refund £9,220 to 726 affected customers. All three businesses admitted breaching consumer law and cooperated with the CMA, receiving a 40% reduction in their fines for settling the cases early.

For the latest consumer law updates, visit our hub here.