Eight firms under investigation over online pricing practices 

The Competition and Markets Authority (CMA) has announced a major investigation into eight businesses that it suspects have violated consumer laws around online pricing. 

The investigations are the first enforcement cases opened using new powers granted to the CMA which enable it to decide whether consumer laws have been broken, rather than having to go through the courts. If the CMA finds there has been an infringement of the law, it can order businesses to pay compensation to affected customers as well as fining companies up to 10 per cent of global turnover.  

“At a time when household budgets are under constant pressure and we’re all hunting for the best deal possible, it’s crucial that people are able to shop online with confidence, knowing that the price they see is the price they’ll pay, and any sales are genuine,” said Sarah Cardell, chief executive of the CMA.

“This is just the start of our work. Any businesses who break consumer law should be in no doubt we will stamp out illegal conduct and protect the interests of consumers and fair-dealing businesses.” 

The CMA has opened investigations into eight businesses that it suspects have infringed consumer law in relation to their use of fees, use of misleading time-limited offers or the practice of automatically opting consumers in for optional charges.   

Secondary ticketing sites StubHub and viagogo are under review regarding the mandatory additional charges applied when consumers buy tickets. The investigation will focus on whether these fees are included up front. The AA Driving School and BSM Driving School are also being investigated over their presentation of mandatory fees on their sites.   

“Whether you’re spending your hard-earned cash on concert tickets or driving lessons, joining a gym or buying furniture and appliances for your home, you deserve a fair deal,” said Cardell.

“It’s our job to protect consumers from misleading prices and illegal pressure selling and today marks an important milestone as we take action across the economy to make sure businesses do the right thing by their customers.” 

In addition to the investigations, the CMA is sending letters to 100 businesses across the country outlining concerns about their use of additional fees and online sales tactics.  The letters are intended as a warning to businesses like luggage storage providers, cinemas and food delivery companies to ensure that their practices are in line with the law. If these businesses are found to have broken the law, the CMA is threatening to take further enforcement action in the future.