Firms hit with £6 million CMA fines for sales tactics

Three major firms have been fined £6 million for misleading sales tactics, the competition watchdog has revealed.

The Competition and Markets Authority has fined Wayfair £4.8 million for false time-limited offers, Appliances Direct £1.2 million and ordered it to refund customers about £432,000, and Gold’s Gym £45,000 and ordered to refund customers about £9000.

Wayfair and Appliances Direct were fined for misleading customers with time-limited offers that did not end when they said they would, while Appliances Direct also automatically opted customers into paid-for extras.

Gold’s Gym was fined for not giving the total price for memberships, including the joining fee, in a clear and timely way.

Customers of Appliances Direct and Gold’s Gym will receive about £440,000 in refunds as a result of the action.

Hayley Fletcher, Competition and Markets Authority senior director for consumer protection, 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.”

A Wayfair spokesperson added: “Although we believe the fine is excessive and disproportionate, we take the findings seriously and chose to settle so we can continue to focus on serving customers.”

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