Online Pricing Investigation Hits Eight Firms

The UK's competition regulator, the CMA, has launched its first investigations under new consumer protection powers against eight firms.

sarah

Nov 18, 2025 - 20:24

Online Pricing Investigation Hits Eight Firms

As part of a review of online pricing practices, Britain's competition regulator has launched investigations into eight companies, including ticket resellers and driving schools.

These cases are the first initiated by the Competition and Markets Authority (CMA) under new consumer protection powers, and are considering actions such as mandatory additional fees, time-limited sales, and automatic opt-in.

The companies being investigated include StubHub, Viagogo, AA Driving School, BSM Driving School, Gold's Gym, Wayfair, Appliances Direct, and Marks Electrical.

The CMA is also writing to 100 businesses to express its concerns about their use of additional fees and sales strategies.

CMA Chief Executive Sarah Cardell said: "At a time when household budgets are under constant pressure and we are all looking for the best possible deal, it is vital that people can shop online with confidence, knowing that the price they see is the price they will pay, and that any sales are genuine."

This announcement follows a major review that has been underway since April, examining more than 400 businesses across the economy to determine whether price transparency rules are being followed.

Under the Digital Markets, Competition and Consumer Act, implemented last year, the CMA has powers to address anti-competitive behavior.

It can now determine whether consumer laws have been violated—without having to resort to the courts.

It can order businesses to compensate affected customers and fine companies up to 10% of their global turnover.

The CMA has stated that it is investigating practices such as pressure selling, drop pricing, and misleading countdown clocks as part of its investigation.

Drop pricing occurs when shoppers are shown the initial price of a product or service on a website, but later discover additional charges during the checkout process.

The next update on the investigation is due next March.

Rosio Concha, policy and advocacy director at consumer group Which?, said it was "encouraging that the regulator is taking this action."

"It should not hesitate to use its new consumer enforcement powers to impose fines on any company found violating the rules."

The 100 companies contacted by the CMA operate in a wide range of sectors, including holidays (including package travel), household goods retailers, rail travel, parking and airport parking, bus and bus travel, luggage storage, cinemas, live event tickets, food and beverage delivery companies, letter and parcel delivery, gyms and fitness, fashion, and online vouchers.

These companies have been put on "notice" and must ensure they comply with pricing guidelines and unfair business practices guidelines to avoid enforcement action.

The CMA outlined the reasons for investigating eight companies:

StubHub and Viagogo are being investigated over whether consumers can see all fees they pay at the beginning of the purchase process – which could include things like taxes and booking fees.

AA Driving School and BSM Driving School are being investigated over how they display booking fees – and whether they are displayed at the beginning of the purchase process.

Gold's Gym is being investigated over how it displays the one-time membership fee for its annual memberships – and there are concerns that it "initiates this midway through the sign-up process and does not include it in the advertised membership fee," the CMA said.

Wayfair is being investigated over whether time-limited sales end at the stated time. Marks Electrical is being investigated for whether customers automatically opt-in for additional services (such as removal and installation of old appliances), and Appliances Direct is being investigated for both of these practices.

Of the eight companies, the CMA stated that it "has not reached any conclusions about whether the law has been broken in any of these investigations."

Nick Glynn, Chief Executive Officer of Buy It Direct, the parent company of Appliances Direct, said his company was informed of the CMA's investigation only hours before it was published in the media.

He said, "We are one of the UK's largest appliance retailers, selling over two million products each year. I am not aware of any customer complaints about our promotions."

AA Driving School and BSM Driving School are brands operated under Automobile Association Developments Limited.

A spokesperson for both companies said: "We are pleased that the £3 booking fee for classes is already transparent and in line with CMA regulations and we are happy to inform customers in advance of their travel, which we have already done."

A spokesperson for Viagogo said: "We continue to engage constructively with the CMA and will fully cooperate with their investigation."