CMA FINES WAYFAIR, APPLIANCES DIRECT AND GOLD'S GYM £6M OVER SALES TACTICS

The Competition and Markets Authority has fined three retailers a total of £6m for misleading sales tactics. Wayfair was fined £4.8m and Appliances Direct £1.2m, both over false time-limited offers, the regulator said. Gold's Gym was fined for not giving customers the total price of memberships, including joining fees, in a clear and timely way; the CMA put the fine at £45,000, though one report cited a figure of £48,000. Appliances Direct and Gold's Gym have been ordered to refund customers a total of around £440,000, and will contact those affected directly. The CMA said customers do not need to take any action.

According to the CMA, Wayfair advertised products through "Daily Deals" and 24-hour "Flash Deals", with phrases such as "Here Today, Gone Tomorrow" and countdown timers suggesting customers needed to act quickly. The regulator said many products remained available at the same price or lower once the deadline had passed. Appliances Direct also automatically opted customers into paid-for extras, the CMA said. All three businesses admitted breaking the law and settled early, receiving a 40% reduction in their fines as a result.

Hayley Fletcher, the CMA's senior director for consumer protection, said people should see genuine, accurate prices and offers, and should be free to decide for themselves whether to buy optional extras. She said businesses must treat customers fairly and comply with the law or risk substantial fines. The CMA said it has imposed fines of more than £12m and secured almost £2.4m in refunds for consumers over the past 18 months under its newer consumer protection powers. All three companies have been approached for comment.