The UK competition regulator has opened investigations into eight companies, including ticket resellers and driving schools, as part of a review of online pricing practices.
The cases are the first brought by the Competition and Markets Authority (CMA) under new consumer protection powers, and look at actions such as mandatory additional charges, limited-time sales and automatic subscriptions.
The companies investigated are StubHub, Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical.
The CMA is also writing to 100 businesses to express concerns about the use of additional fees and sales tactics.
CMA chief executive Sarah Cardell said: “At a time when household budgets are under constant pressure and we are all looking for the best possible deal, it is crucial that people can shop online with confidence, knowing that the price they see is the price they will pay and that any sale is genuine.”
The announcement comes after a major review that has been ongoing since April, looking at more than 400 companies across the economy to review whether price transparency rules are being met.
Under the Digital Markets, Competition and Consumer Act introduced last year, the CMA has powers to tackle anti-competitive behaviour.
You can now decide whether consumer laws have been violated, rather than having to go to court.
It can order companies to pay compensation to affected customers and fine companies up to 10% of their global turnover.
The CMA has said it is investigating practices including pressure selling, drip pricing and misleading countdown clocks as part of its investigations.
Drip pricing occurs when shoppers are shown an initial price for an item or service on a website, only to find that additional fees are revealed later in the checkout process.
The 100 companies contacted by the CMA operate in a variety of sectors, including holidays (including package holidays), home goods retailers, rail travel, airport parking and parking, bus and coach travel, luggage storage providers, cinemas, live event tickets, food and drink delivery companies, letter and parcel delivery, gyms and fitness, fashion and online vouchers.
These companies have been put “on notice” and must ensure that they comply with pricing guidelines and unfair trade practices guidelines to avoid enforcement actions.
Of the eight companies, the CMA said it had “not reached any conclusion as to whether the law had been broken in any of these investigations”.
AA Driving School and BSM Driving School are brands operated as part of Automobile Association Developments Limited.
A spokesperson for both companies said: “We feel comfortable that the £3 booking fee for lessons is already transparent and in line with CMA rules and we are more than happy to notify customers earlier in the trip too, which we have already done.”
A Viagogo spokesperson said: “We have continually engaged constructively with the CMA and will cooperate fully with their investigation.”
