By Yadarisa Shabong
(Reuters) -Britain’s competition regulator launched on Tuesday investigations into eight firms including ticket vendors StubHub and viagogo over online pricing issues, in its first enforcement actions under new and tougher consumer protection powers.
The businesses under investigation include fitness chain Gold’s Gym and homeware retailer Wayfair in the UK.
The Competition and Markets Authority said it was probing the companies over suspected breaches of consumer law related to online pricing practices, including drip pricing and the use of misleading countdown timers.
Drip pricing, prevalent in event and cinema tickets and gym memberships, is the practice of advertising an initial price but failing to include mandatory charges upfront and introducing unavoidable fees at checkout.
“We are fully compliant with UK regulations and do not undertake drip pricing, ensuring all fees are displayed to fans before they make a purchase,” StubHub International said in an emailed statement to Reuters, adding that it was cooperating with the CMA.
Viagogo also said it was cooperating with the investigation.
Reuters could not immediately contact Gold’s Gym and Wayfair.
HOUSEHOLD BUDGETS UNDER PRESSURE
Under powers granted by the Digital Markets, Competition and Consumers Act 2024, the CMA can fine companies up to 10% of their global turnover and order them to compensate customers if it finds that they have broken the law.
“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,” CMA chief executive Sarah Cardell said in a statement.
The CMA, which reviewed more than 400 businesses across 19 sectors since April, is also sending advisories to 100 firms across various industries, outlining concerns about their use of additional fees and online sales tactics.
The letters targeted industries where the CMA identified potential concerns as well as key areas of spending such as holidays, travel, cinemas, food and drink delivery companies and online vouchers, it said.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)
