CMA launches investigations into StubHub, Wayfair over pricing practices

The U.K.’s Competition and Markets Authority announced a major package of action covering online pricing practices, including drip pricing and pressure selling, under the new Digital Markets, Competition and Consumers Act 2024. This move will ensure people can shop with confidence and fair-dealing businesses can compete on a level playing field, the CMA said in a statement. Using the results of this review, alongside additional monitoring, the CMA identified potential compliance concerns in 14 sectors, including drip pricing and the use of misleading countdown timers, which are banned under the new regime. The CMA is taking a two-tier approach based on this work – launching enforcement action and sending advisory letters to 100 businesses – while also publishing new guidance for businesses to help them comply with the law. The CMA has opened investigations into 8 businesses that it has reason to suspect have infringed consumer law in relation to their use of fees, use of misleading time-limited offers and/or the practice of automatically opting consumers in for optional charges. Two of the 8 firms – secondary ticketing sites StubHub (STUB) and viagogo – are under review regarding the mandatory additional charges applied when consumers buy tickets – and whether or not these fees are included upfront. Homeware retailers Wayfair (W), Appliances Direct, and Marks Electrical – are being investigated to determine whether their time-limited sales ended when they said they would, or whether customers are being automatically opted in to purchasing additional services.