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Three major companies have been handed fines totalling £6 million for employing misleading sales tactics, according to the competition watchdog.
The Competition and Markets Authority (CMA) penalised Wayfair £4.8 million over false time-limited promotions. Appliances Direct received a £1.2 million penalty and was ordered to return roughly £432,000 to buyers, while Gold’s Gym was fined £45,000 and told to refund around £9,000.
Wayfair and Appliances Direct misled shoppers using time-sensitive deals that did not actually expire when advertised. Appliances Direct also automatically added paid-for extras into customer orders.
Gold’s Gym failed to state the full price of memberships, including joining fees, in a clear and timely manner.
In total, customers of Appliances Direct and Gold’s Gym will share approximately £440,000 in refunds. The regulator confirmed both firms will contact affected buyers directly, meaning customers do not need to take any action.
Hayley Fletcher, senior director for consumer protection at the CMA, said: “Whether buying a new sofa, a washing machine, or joining a gym, people should see genuine, accurate prices and offers – and decide for themselves whether they want optional extras.
“At a time when many households are carefully managing their budgets, people shouldn’t lose out because of misleading sales tactics.
“The time is up for this kind of behaviour. Businesses must treat their customers fairly and make sure they comply with the law – or risk hefty fines.”
The CMA’s investigation found that products were advertised on Wayfair’s website through “Daily Deals” and 24-hour “Flash Deals”, alongside messages such as “Here Today, Gone Tomorrow” and countdown timers, which implied customers needed to act quickly to get the best deal.
However, the CMA found that many products remained available at the same price or lower after the stated deadline, making the time-limited offer false.
Appliances Direct customers were automatically opted into one or both of services to “Remove & Recycle Your Old Appliance” and “Installation on Delivery service”.
Under consumer law, businesses must get customers’ express agreement before charging them for optional extras, and pre-ticked boxes and other forms of automatic opt-in are not allowed.
Appliances Direct also used pop-up countdown banners on some product pages which claimed that discounts of £10 to £25 were available for a limited time, but the CMA found that the same discount codes appeared repeatedly over many days.
Appliances Direct must pay about £432,000 in refunds to customers affected by opt-ins, at an average amount of £25 per person.
The CMA found that Gold’s Gym failed to include the joining fee in the total price shown to consumers for their annual and direct debit memberships, or the total price was shown in a way that was unclear and unlikely to be seen.
Under consumer law, businesses must show customers the total price, including any mandatory fees, clearly and from the outset.
The CMA has ordered Gold’s Gym to refund a total of £9,220 to the 726 affected customers.
The amount repaid to each customer will depend on the type of membership they bought, but it will be either £50 or £10.
A Wayfair spokeswoman said: “Although we believe the fine is excessive and disproportionate, we take the CMA’s findings seriously and we chose to settle so we can continue to focus on serving our customers.”
