Eight firms under investigation over online pricing

As part of the UK's antitrust authority's investigation into online pricing practices, eight firms, including ticket resellers and driving schools, have been investigated by the UK government as part of a study into online price practices. The cases were the first cases brought by the Competition and Markets Authority (CMA) under new consumer protection legislation, and they are considering measures such as mandatory additional fees, time limited sales, and automatic opt-ins. StubHub, Viagogo, AA Driving School, BSM Driving School; Gold's Gym, Wayfair, Appliances Direct, and Marks Electrical are among the businesses investigated. The CMA is also writing to 100 companies to inform them that it is concerned about the use of additional fees and marketing tactics.

At a time when household budgets are under constant strain and we're all searching for the best bargain possible,

CMA chief executive Sarah Cardell said,

it's vital that people shop online with confidence, knowing that the price they see is the price you'll pay and that any sales are legitimate.

The announcement comes after a massive review, which has been ongoing since April, looked at more than 400 companies around the country, to see if price transparency laws are being followed. The CMA has the ability to combat anti-competitive behaviour under the Digital Markets, Competition, and Consumer Act, which was introduced last year. It will now determine if consumer rights have been broken rather than having to go through the courts. It can order companies to compensate their affected customers, as well as fine fine firms up to 10% of global turnover. As part of its probes, the CMA has reported that it is investigating techniques such as pressure pricing, drip pricing, and misleading countdown clocks. When consumers are shown an initial price for an item or service on a website, drip pricing is charged only to find additional charges are revealed later in the checkout process. The next updates in the probes are set to be published in next month. Rocio Concha, director of strategic and advocacy for consumer group Which? Encouraging that the regulator is taking this action, the regulator said it was encouring that it was.

It should not hesitate to use its latest consumer protection tools to discipline any businesses that have breached the rules. The 100 companies that have been contacted by the CMA include holidays (including gift travel), homeware stores, rail travel, parking and airport parking, bus and coach travel, luggage storage, movie rental, food and beverage delivery, fitness and fashion, and online vouchers. These businesses have been

on notice" and are expected to comply with pricing guidance and guidelines on unfair business conduct in order to avoid enforcement action.

The CMA said it had

no conclusions about whether the statute has been broken in any of these investigations. Automobile Association Developments Limited runs AA Driving School and BSM Driving School. Both companies' spokespersons said:

We are confident that the £3 booking fee for lessons is completely transparent and in accordance with the CMA's legislation, and we are more than willing to notify customers earlier in the journey as well, which we have already did.

We have continually collaborated constructively with the CMA and will be fully cooperating with their probe,

a Viagogo spokesperson said. Marks Electrical said it was

fully committed to full compliance with all applicable consumer and antitrust legislation

and that it would cooperate with the probe.

Our checkout has attempted to provide these services with concise descriptions, straightforward pricing, and a simple one-click option to delete them,

it said. "Product prices and service costs are shown separately and prominently, ensuring that customers can make informed decisions before making their purchase. For comment, StubHub, Gold's Gym, Wayfair, and Appliances Direct has been contacted by the BBC.

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