The CMA investigation
Having launched an investigation into Marks Electrical Limited in November 2025, the Competition and Markets Authority (CMA) has now concluded its enforcement action as part of its ongoing focus on consumer protection and in particular, pricing practices.
The CMA's concerns centred on the use of pre-selected optional extras during the online purchasing process, notably "pre-ticked" boxes which automatically added certain services or charges unless consumers actively “unticked” them. One example was a paid appliance recycling service, under which customers would pay to have an old appliance removed when a new one was delivered.
Under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, consumers must be given a genuine choice as to whether they wish to purchase an additional product or service. As such, businesses are prohibited from using automatic opt-ins for optional extras.
Outcome and resolution
The CMA has finalised its investigation into Marks Electrical by imposing a £720,000 fine and ordering around £600,000 to be repaid to affected customers. The penalty was reduced by 40%, reflecting the company’s constructive engagement with the CMA, its admission that it had breached the law and its agreement to settle early, consistent with the approach seen in the CMA’s previous action against AA Driving School.
The outcome is consistent with the CMA's wider enforcement approach, which appears to increasingly encourage early resolution and compliance commitments where businesses engage constructively with the regulator.
Comment
As with other investigations we have highlighted previously in this blog, this case reflects the CMA's continued focus on pricing practices, ensuring consumers receive clear pricing information when making purchasing decisions. It also provides a further illustration of how the CMA is beginning to use its new direct enforcement powers, both to impose substantial financial penalties and to secure settlement outcomes at an early stage. This is both advantageous to the CMA, in terms of saving resources, but also to businesses being investigated as a 40% reduction is a sizeable amount in light of the CMA’s power to fine up to 10% of a company’s global turnover. It also demonstrates that the CMA is willing to use these powers to enforce consumer protection legislation other than just the DMCCA.
It is clear that businesses must review their pricing practices and consumer journey as a whole. Even points which may appear operationally minor, such as the use of pre-ticked optional extras for relatively low amounts, can nevertheless attract significant regulatory scrutiny. Whilst not a direct issue in this case, caution should also be given to the risk of ‘dripping’ mandatory fees during the consumer journey as this also continues to be another key focus of CMA enforcement.
The Mills & Reeve advertising team will continue to monitor these developments closely. In the meantime, if you require support, please get in touch.
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