The UK competition watchdog has launched enforcement action against eight companies, including Viagogo, BSM driving school, Wayfair Inc (NYSE:W, NYSE:) and Marks Electrical Group PLC (AIM:MRK), over misleading prices and illegal pressure selling online.
A major consumer protection initiative was launched by the Competition and Markets Authority (CMA) using new powers granted by the Digital Markets, Competition and Consumers Act that was passed into law last year.
The regulator has opened investigations into the eight firms, which also includes Viagogo parent StubHub, Appliances Direct and Gold’s Gym, and focused on potential breaches such as drip pricing, misleading countdown timers, and default opt-in charges.
The CMA has also sent advisory letters to 100 firms across 14 sectors, warning them to review their practices. These include companies in travel, ticketing, retail, fitness, and food delivery.
This is the CMA’s first use of its direct enforcement powers under the new laws, which enable the authority to impose penalties, including fines of up to 10% of global turnover and consumer compensation.
Wider guidance on price transparency has also been published to help businesses comply with the law.
Chief executive Sarah Cardell said: “It’s our job to protect consumers from misleading prices and illegal pressure selling and today marks an important milestone as we take action across the economy to make sure businesses do the right thing by their customers.”
She added: "It's our job to protect consumers from misleading prices and illegal pressure selling and today marks an important milestone as we take action across the economy to make sure businesses do the right thing by their customers.”
"This is just the start of our work. Any businesses who break consumer law should be in no doubt we will stamp out illegal conduct and protect the interests of consumers and fair-dealing businesses."