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[BUSINESS] · United Kingdom · 2 sources

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Wayfair and two other firms fined £6m for misleading sales tactics

consumer protection misleading sales tactics CMA fines Wayfair retail regulation

The UK Competition and Markets Authority (CMA) has imposed £6 million in fines on three companies for using misleading sales tactics to deceive consumers.

Wayfair received the largest penalty of £4.8 million after investigations revealed the retailer used artificial countdown timers and false urgency in its 'Daily Deals' and '24-hour Flash Deals' to rush shoppers into purchases. Many items remained available at the same or lower prices after the advertised deadlines had passed.

Appliances Direct was fined £1.2 million and ordered to refund approximately £432,000 to customers. The regulator found the company used misleading time-limited offers and automatically opted customers into paid extras. Gold’s Gym was fined £45,000 and ordered to refund roughly £9,000 for failing to clearly disclose total membership costs, including joining fees.

All three businesses admitted to the breaches and agreed to settle early, which resulted in a 40 percent reduction in their respective financial penalties. The CMA stated that affected customers of Appliances Direct and Gold’s Gym will be contacted regarding their refunds and do not need to take any action.

Entities

Appliances Direct · Competition and Markets Authority · Gold’s Gym · Hayley Fletcher · Wayfair

Claims

What the coverage asserts, and how many sources carry each claim.

  • [○ 1 SOURCE] Gold’s Gym failed to clearly and timely disclose total membership prices, including joining fees. www.independent.co.uk
  • [○ 1 SOURCE] Wayfair used artificial countdown timers and false urgency in its Daily Deals and 24-hour Flash Deals. time.news
  • [○ 1 SOURCE] Customers of Appliances Direct and Gold’s Gym are to receive approximately £440,000 in total refunds. www.independent.co.uk
  • [○ 1 SOURCE] The three companies received a 40 percent reduction in their financial penalties for settling early and engaging constructively. time.news
  • [● 2 SOURCES] The CMA imposed £6 million in total fines on Wayfair, Appliances Direct, and Gold’s Gym for misleading sales tactics. time.news · www.independent.co.uk
  • [○ 1 SOURCE] Appliances Direct automatically opted customers into paid extras. www.independent.co.uk

Sources

Wayfair Fined £4. 8 Million Over Misleading Flash Sales Tactics [time.news]
Wayfair and Appliances Direct among firms fined £6m for misleading sales tactics [www.independent.co.uk]