Watchdog Probes Eight Firms for Online Pricing Practices
The UK’s Competition and Markets Authority (CMA) is currently investigating the pricing practices of eight companies as part of its ongoing effort to ensure transparency in online shopping. This scrutiny comes amid a broader review that has been in progress since April, examining over 400 businesses. The aim is to ensure compliance with pricing regulations under the Digital Markets, Competition and Consumers Act introduced last year.
Key Focus Areas of the Investigation
Sarah Cardell, the CMA’s chief executive, emphasized the importance of transparent pricing for consumers dealing with mounting financial pressures. The authority is particularly concerned about several practices that could mislead consumers, including:
- Pressure Selling: Techniques that compel customers to make quick purchasing decisions.
- Drip Pricing: When additional fees appear during the checkout process after an initial price is displayed.
- Misleading Countdown Clocks: Timers that create a false sense of urgency for deals.
Enforcement Powers of the CMA
Under its enhanced powers, the CMA can address anti-competitive behaviors directly without court involvement. This includes the authority to:
- Determine if consumer laws have been violated.
- Order compensation for affected consumers.
- Impose fines up to 10% of a company’s global turnover.
Businesses Under Review
The CMA has reached out to 100 companies spanning various sectors, including:
- Travel (holidays and package deals)
- Homeware retail
- Transport (rail, bus, and coach services)
- Parking (airport and other locations)
- Cinemas and live events
- Food and drink delivery
- Parcel and letter delivery services
- Fitness (gyms and wellness services)
- Fashion and online vouchers
This investigation highlights the CMA’s commitment to ensuring that consumers can confidently engage in online transactions, knowing that advertised prices reflect the final amount they will pay.
