CMA launches investigations into Wayfair, Appliances Direct and Marks Electrical

Homeware retailers Wayfair and Appliances Direct are being investigated over the use of time-limited sales and whether these offers actually ended when the retailers said they did. Appliances Direct, as well as Marks Electrical, are also being reviewed over the potential use of “default opt-ins”, where customers are automatically opted-in to making additional purchases. 

“At this stage, the CMA has reached no conclusions about whether the law has been broken in any of these investigations,” the watchdog said in a statement.

Since April, the CMA has been conducting a review of over 400 businesses in 19 different sectors to check whether they comply with rules on price transparency. These rules were granted under the new Digital Markets, Competition and Consumers Act 2024 (DMCCA), which aimed to strengthen its hand in dealing with practices like drip pricing and pressure selling.

In addition to the three retailers, investigations have been opened into ticket platforms StubHub and Viagogo, two driving schools and Gold’s Gym. The CMA has also written to 100 businesses across 14 sectors to express concerns about their use of additional fees and sales tactics.

“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 CMA chief executive Sarah Cardell.

“Since the launch of the new regime, we’ve been working hard to help businesses understand the law. But alongside supporting businesses to comply, we’ve always been clear that we will take swift action where we suspect potentially serious breaches of the law.”

The businesses to receive advisory letters include homeware retailers, parcel firms, food and drink delivery companies, fashion firms and online voucher sellers.

In a statement released after the investigation was announced, Marks Electrical said: ”We pride ourselves on transparency, clear pricing, and providing services that customers consistently value. For many years we have led the way in offering optional recycling, packaging removal and old-appliance collection services, helping to reduce landfill waste and ensuring responsible disposal of plastics and polystyrene. These services are highly popular with our customers and remain entirely optional.”

“We pride ourselves on transparency, clear pricing, and providing services that customers consistently value. For many years we have led the way in offering optional recycling, packaging removal and old-appliance collection services, helping to reduce landfill waste and ensuring responsible disposal of plastics and polystyrene. These services are highly popular with our customers and remain entirely optional.”

It added that it had already taken steps to align the presentation of these services with the CMA’s expectations under the DMCCA and that it would cooperate fully with the investigation.