The Competition and Markets Authority (CMA) has opened an investigation against online furniture retailer Wayfair over concerns of compliance with consumer protection law.
The CMA is investigating whether time-limited sales ended when they said they would and will now engage with Wayfair and gather evidence to consider whether the CMA thinks Wayfair has infringed consumer protection law.
“At this initial stage, it should not be assumed that Wayfair has infringed consumer protection law and no finding has been made,” a statement said.
The investigation forms part of a wider package of action covering online pricing practices, including drip pricing and pressure selling, under the new Digital Markets, Competition and Consumers Act 2024 (DMCCA).
This move will ensure people can shop with confidence and fair-dealing businesses can compete on a level playing field.
Since April, the CMA has been conducting a major cross-economy review of more than 400 businesses in 19 different sectors to assess compliance with the rules on price transparency.
Using the results of this review, alongside additional monitoring, the CMA identified potential compliance concerns in 14 sectors, including drip pricing and the use of misleading countdown timers, which are banned under the new regime.
The CMA is taking a two-tier approach based on this work – launching enforcement action and sending advisory letters to 100 businesses – while also publishing new guidance for businesses to help them comply with the law.
Sarah Cardell, Chief Executive of the CMA, 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.
“Whether you’re spending your hard-earned cash on concert tickets or driving lessons, joining a gym or buying furniture and appliances for your home, you deserve a fair deal.
“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.
“Since the launch of the new regime, we’ve been working hard to help businesses understand the law. But alongside supporting businesses to comply, we’ve always been clear that we will take swift action where we suspect potentially serious breaches of the law.
“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.”
