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02 Nov 2026
4 minutes read

The price isn’t right: CMA fines three firms over misleading sales tactics

On 14 October 2026, the Competition and Markets Authority (CMA) confirmed that it had concluded its investigations into three companies – Wayfair Stores Limited, Buy it Direct Ltd (trading as Appliances Direct), and Gold’s Gym (UK) Limited – as part of its ongoing regulatory concentration on consumer protection enforcement and, in particular, pricing practices.

Wayfair and Appliances Direct

Wayfair and Appliances Direct were both investigated for promoting time-limited offers that did not end when they said they would. Under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), falsely stating that a product will only be available for a limited time, or that it will only be available on particular terms for a limited time, in order to elicit an immediate decision and deprive consumers the chance to make an informed purchase decision, is automatically considered to be an unfair practice.

Wayfair were found to have advertised "daily deals" and 24-hour "flash deals" alongside the use of other methods such as countdown timers, all of which implied customers needed to act quickly to get the best deal. However, in many cases those same products remained available at the same price or lower after the stated deadline. The company was therefore fined £4.8 million by the CMA, the biggest penalty the regulator has imposed so far under the DMCCA.

The CMA similarly found that Appliances Direct had used pop-up countdown banners which claimed that discounts of £10 to £25 were available for a limited time, even when the same discount codes appeared repeatedly over many days. The company was further investigated for automatically opting customers into paid-for "remove and recycle your old appliance" and "installation on delivery" services via pre-ticked checkboxes. Opting consumers into extra payments for optional goods or services without their express consent is prohibited under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCRs). As a result of these breaches, the CMA imposed a fine of £1.2 million and also ordered Appliances Direct to pay around £432,000 in refunds to customers (around £25 per affected customer).

Gold’s Gym

Gold’s Gym was found to have either failed to include the joining fee in the total price shown to consumers for their annual and Direct Debit memberships, or to have only shown it in a way that was unclear and unlikely to be seen. Under the DMCCA, the total price of a service – and therefore all mandatory charges – must be included in the initial price shown to consumers as part of any “invitation to purchase”.

Gold’s Gym were fined £45,000 and ordered to pay refunds totalling £9,220 to the 726 affected customers (between £5 to £10 per customer, depending on the type of membership purchased).

Comment

As we have previously highlighted, businesses must review the entire online customer journey, particularly initial pricing information, checkboxes, and default settings. Businesses using flash sales, countdown timers or “today only” messaging to encourage sales should ensure the offer genuinely expires when stated. Optional services should also be genuinely discretionary and require a positive, active choice by the consumer.

These cases fall into the trend we have written about previously on this blog regarding the CMA’s current attention on pricing practices, as well as a demonstration of the new enforcement powers the CMA has gained under the DMCCA – which it is using not just to enforce the prohibitions on unfair commercial practices within the DMCCA itself, but further consumer protection legislation such as the CCRs. All three cases referred to above were settled between the CMA and the companies under investigation, and the CMA noted that they had engaged constructively with the regulator, resulting in the maximum 40% reduction in their fine.

The CMA says that in the first 18 months of its strengthened regime it has already imposed more than £12 million in fines and secured nearly £2.4 million in consumer refunds. It’s clear that issues which businesses might previously have regarded as relatively minor website or marketing compliance points are now potentially much more financially significant.

“Drip pricing” – where prices are added as consumers proceed with a transaction – is another area of focus for the CMA, and currently there are a number of companies under investigation for potential breaches in this area, including Viagogo, Virgin Atlantic, Trainline and RED Driving School.

Useful links

For more information on the CMA’s recent enforcement action, pricing transparency and the CMA’s new powers, see our articles below:

Our advertising team will continue to monitor these developments closely. In the meantime, if you require support, please get in touch.

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