The UK’s competition regulator has launched formal investigations into eight major companies, including ticket resale platforms and national driving schools, amid growing concerns over misleading online pricing tactics.
The Competition and Markets Authority has opened these cases as part of its wider review into digital pricing practices, marking the first investigations carried out under its new consumer enforcement powers.
The companies under scrutiny are StubHub, Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical. The CMA has also written to 100 additional firms across multiple sectors warning them about the misuse of fees, pressure-selling techniques and promotional tactics.
CMA chief executive Sarah Cardell said: “At a time when household budgets are under constant pressure and we’re all hunting for the best deal possible, it’s crucial that people are able to shop online with confidence, knowing that the price they see is the price they’ll pay, and any sales are genuine.”
The announcement follows a broad review launched in April, examining more than 400 businesses across the UK economy to ensure compliance with price transparency rules.
Under the Digital Markets, Competition and Consumers Act introduced last year, the CMA can decide whether consumer laws have been breached without needing to go through the courts. The watchdog also has the authority to order compensation and fine companies up to 10% of their global turnover.
The investigations cover several online practices, including drip pricing, misleading countdown clocks and pressure selling. Drip pricing occurs when shoppers see an initial price on a website but discover additional mandatory fees only at the checkout stage.
Consumer group Which? welcomed the move. Rocio Concha, director of policy and advocacy, said it was “encouraging that the regulator is taking this action”, adding that it should “not hesitate to use its new consumer enforcement powers to fine any firms that have broken the rules.”
The 100 companies placed on notice operate in areas such as holiday providers, rail and coach travel, parking services, luggage storage, cinemas, food delivery, homeware, fashion, gyms, parcel services and online vouchers. They must review their pricing methods to avoid enforcement measures.
The CMA highlighted specific concerns for each of the eight companies now under full investigation:
• StubHub and Viagogo are being examined for mandatory additional charges added during ticket purchases.
• AA Driving School and BSM Driving School are being investigated for the way booking fees are displayed at the start of the purchase journey.
• Gold’s Gym is under investigation for the way it presents its one-off joining fee, including concerns over introducing the charge part way through registration.
• Wayfair is being examined over whether its time-limited sales genuinely end when advertised.
• Marks Electrical is being investigated for automatic opt-ins to additional services.
• Appliances Direct is being investigated for both time-limited sales concerns and automatic opt-ins.
The regulator emphasised that it has “reached no conclusions about whether the law has been broken in any of these investigations”.
AA Driving School and BSM Driving School, both operated by Automobile Association Developments Limited, said in a statement: “We are comfortable that the £3 booking fee for lessons is already transparent and in line with the CMA’s rules and are more than happy to additionally notify customers earlier in the journey as well, which we have already done.”
A Viagogo spokesperson said: “We have continually engaged constructively with the CMA and will be fully cooperating with their investigation.”
The BBC has contacted StubHub, Gold’s Gym, Wayfair, Marks Electrical and Appliances Direct for further comment.
