Watchdog investigates eight companies over online pricing practices

The competition watchdog has begun investigations into eight companies about their online pricing practices, expressing concern over additional fees and sales tactics such as drip pricing and pressure selling.

- Julia Kollewe

The Competition and Markets Authority (CMA) said yesterday that it was looking into the ticket sellers StubHub and Viagogo; AA Driving School and BSM Driving School; the US chain Gold’s Gym; and the retailers Wayfair, Appliances Direct and Marks Electrical.

The investigations are the first launched by the CMA using its new consumer protection powers. The watchdog said it had concerns over practices including drip pricing - when consumers are shown an initial price and then face additional fees in the checkout process - and the use of misleading countdown timers, which are banned under the new regime.

The investigations follow a review of more than 400 businesses in 19 sectors to assess their compliance with price transparency rules.

The watchdog has also written to 100 businesses across 14 sectors outlining concerns about their use of additional fees and sales tactics. It is publishing guidance for businesses to help them comply with the law.