Wayfair fined £4.8 million over fake flash deals
Key Points
- CMA fines Wayfair £4.8 million over fake flash deals and countdown timers
- Appliances Direct fined £1.2 million for pre-ticked paid extras
- Appliances Direct refunds total around £432,000, averaging £25 each
- Gold’s Gym fined £45,000 for hiding joining fees in London
- All three firms received a 40% discount for settling early
The Competition and Markets Authority (CMA) has fined Wayfair £4.8 million over fake time-limited offers. The regulator announced the penalty on Wednesday (14 October), alongside fines for Appliances Direct and Gold’s Gym that bring the total to £6 million.
Wayfair advertised products on its UK website through “Daily Deals” and 24-hour “Flash Deals”, with countdown timers and messages such as “Here Today, Gone Tomorrow”.
The CMA found that many of these products stayed on sale at the same price or lower after the deadline had passed.
The regulator said the false deadlines could have pressured shoppers into making quick purchases so they would not miss out.
Under the Digital Markets, Competition and Consumers Act 2024, falsely claiming an offer is time-limited to rush a purchase is unfair in all circumstances.
Appliances Direct ordered to refund customers
The CMA fined Appliances Direct £1.2 million and ordered it to refund around £432,000 to customers.
The online appliance retailer automatically opted customers into one or both of the following paid-for services:
Remove & Recycle Your Old Appliance, which collects the customer’s old appliance at delivery for recycling
Installation on Delivery, which installs the new appliance when it arrives
Consumer law requires businesses to get customers’ express agreement before charging for optional extras, which rules out pre-ticked boxes.
Refunds average £25 per customer, which works out to around 17,000 people.
Appliances Direct also ran pop-up countdown banners claiming discounts of £10 to £25 were available for a limited time. The CMA found the same discount codes appeared repeatedly over many days.
The retailer will contact affected customers by letter or email, and they do not need to take any action.
Gold’s Gym hid joining fees
The CMA fined Gold’s Gym, a UK franchise running four gyms in London, £45,000 for leaving its joining fee out of the total membership price.
The gym must refund £9,220 to 726 customers, with each receiving either £50 or £10 depending on their membership type.
Gold’s Gym (UK) operates independently of Gold’s Gym International, which is part of RSG Group.
All three businesses admitted breaking the law and settled early, which cut their fines by 40%.
“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,” said Hayley Fletcher, Senior Director for Consumer Protection at the CMA.
“Businesses must treat their customers fairly and make sure they comply with the law – or risk hefty fines,” Fletcher added.
The CMA has imposed more than £12 million in fines and secured nearly £2.4 million in refunds over the past 18 months using its new consumer protection powers.
It can fine a business up to 10% of its global turnover, or £300,000 if that figure is higher.
