CMA secures over 拢4 million in refunds for Wowcher customers
Following CMA action, Wowcher will change the way it promotes products and services to customers 바카라 사이트� as well as providing over 拢4 million in refunds.
- Wowcher to change its sales practices to avoid potentially misleading or unfairly pressuring consumers into making quick purchases
- Over 拢4 million in total refunded to 870,000 customers who were signed up to Wowcher바카라 사이트檚 바카라 사이트榁IP membership바카라 사이트� via a pre-ticked box, in credit with the option to convert to cash
- CMA CEO: 바카라 사이트淥ur action will make a real difference for the millions of people who use Wowcher바카라 사이트�
The Competition and Markets Authority (CMA) has secured undertakings from Wowcher to change its online selling practices 바카라 사이트� meaning of people can expect to see clear and accurate claims about the availability of products and services on Wowcher바카라 사이트檚 website.
The move comes after the CMA launched an investigation last year over concerns that Wowcher바카라 사이트檚 countdown timers and marketing claims 바카라 사이트� such as 바카라 사이트楻unning out!바카라 사이트� and 바카라 사이트業n high demand!바카라 사이트� 바카라 사이트� may create a false sense of urgency and influence people바카라 사이트檚 purchasing decisions.
The CMA is concerned that such 바카라 사이트榰rgency바카라 사이트� claims risk giving the misleading impression that products shortly won바카라 사이트檛 be available, when this is often not the case. These claims, particularly when used with countdown timers, may pressure shoppers to buy quickly for fear they바카라 사이트檒l 바카라 사이트榤iss out바카라 사이트� 바카라 사이트� potentially leading to rushed purchases or people spending more than they planned to bag a perceived bargain.
In particular, the CMA was concerned that the overwhelming majority of products on Wowcher바카라 사이트檚 site continued to be available at a similar price once the daily countdown timer has ended.
The CMA was also concerned about Wowcher바카라 사이트檚 use of pre-ticked boxes to sign thousands of customers up to its paid-for 바카라 사이트榁IP membership바카라 사이트�, which risks customers being signed up without their full understanding. 聽聽
In November last year, the CMA wrote to Wowcher setting out its concerns and calling on the firm to change its practices 바카라 사이트� or else risk possible court action. As a result, Wowcher has signed formal commitments 바카라 사이트� known as 바카라 사이트榰ndertakings바카라 사이트� 바카라 사이트� meaning it will:
- only use clear and accurate countdown timers: Timers must not mislead consumers or give a false impression that they have to act quickly to avoid missing out on a deal. Wowcher will also remove its permanent countdown timer at the top of its homepage which states 바카라 사이트楧eals refresh in*: XX:XX:XX:XX바카라 사이트� [see Figure 1] and counts down to midnight, suggesting those deals may then change or end.
Figure 1: Illustrative example of a homepage countdown timer
- make sure all marketing claims are clear and accurate: Claims about the scarcity of a deal 바카라 사이트� e.g. 바카라 사이트楢lmost gone 바카라 사이트� only 2 remaining!바카라 사이트� [see Figure 2] 바카라 사이트� must accurately reflect Wowcher바카라 사이트檚 remaining stock levels, among other things. Claims about the popularity of a deal 바카라 사이트� e.g. 바카라 사이트業n high demand!바카라 사이트� [see Figure 3] 바카라 사이트� must accurately reflect Wowcher바카라 사이트檚 sales figures, as well as how popular a deal is compared to other similar deals.
Figure 2: Illustrative example of a scarcity claim
Figure 3: Illustrative example of a popularity claim
- refund customers who were signed up to 바카라 사이트榁IP membership바카라 사이트� via a pre-ticked box: Wowcher will provide a credit refund 바카라 사이트� with the option to exchange to cash 바카라 사이트� to over 870,000 customers and will stop the use of pre-ticked boxes for VIP sign-ups, to ensure customers are fully aware of what they are agreeing to. Based on information provided by Wowcher, the CMA expects refunds for those affected will total over 拢4 million.
Sarah Cardell, Chief Executive at the CMA, said:
Pressure selling tactics 바카라 사이트� such as countdown timers and urgency claims that may create a false impression people must 바카라 사이트楤uy now!바카라 사이트� or miss out 바카라 사이트� can push shoppers into making snap decisions or spending more than they planned.聽
Our action will make a real difference for the millions of people who use Wowcher. Consumers who shop on the site can now have more confidence in the claims they see before parting with their hard-earned cash 바카라 사이트� and hundreds of thousands will soon see refunds, totalling a hefty 拢4 million.
We encourage all Wowcher customers to check their emails and texts from the company to keep an eye out for a credit alert 바카라 사이트� which they can exchange to cash should they wish.
To ensure Wowcher is complying with the commitments it signed, the firm must regularly report back to the CMA over the coming year.
The investigation into Wowcher forms part of the CMA바카라 사이트檚 programme of consumer enforcement action focused on聽바카라 사이트極nline Choice Architecture바카라 사이트�, which is aimed at tackling potentially harmful online selling practices 바카라 사이트� including pressure selling tactics such as urgency claims. The CMA바카라 사이트檚 ongoing investigations into聽Emma Sleep and Simba Sleep are also part of this programme.聽
For more information, visit the바카라 사이트�Wowcher case page.
Notes to editors
- The CMA바카라 사이트檚 investigation concerns Wowcher Limited, LivingSocial Limited and other firms in the same corporate group (바카라 사이트榃owcher바카라 사이트�).
- The undertakings or 바카라 사이트榝ormal commitments바카라 사이트� have been provided to the CMA voluntarily and without any admission of wrongdoing or liability. It should not be assumed that Wowcher has breached the law 바카라 사이트� at present, only a court can decide whether a breach has occurred.
- Wowcher will refund over 870,000 customers, with the amount totalling approximately 拢4,271,000. Affected customers will have the amount they were charged for Wowcher바카라 사이트檚 VIP membership automatically credited to their Wowcher account by 14 August 2024. They can then request that this amount be converted into cash, should they prefer.
- In November 2023, the CMA published an聽open letter and compliance advice聽to UK businesses that sell online. The letter provides examples of claims that the CMA considers breach consumer law, specifically misleading urgency and price reduction claims.
- The key piece of consumer protection legislation relevant to the CMA바카라 사이트檚 investigation, is the Consumer Protection from Unfair Trading Regulations 2008 (CPRs). The CPRs contain a general prohibition against unfair commercial practices and specific prohibitions against misleading actions and misleading omissions.
- The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCRs) are also relevant to the CMA바카라 사이트檚 investigation. The CCRs require businesses to provide consumers with certain prescribed information before they enter into contracts (and in some cases again once the contract is concluded) 바카라 사이트� such as information about the main characteristics of the goods or service, and the business바카라 사이트� details. The CCRs also give consumers certain rights to cancel a contract they entered into online and get a refund; and prevent traders from using 바카라 사이트榩re-ticked바카라 사이트� boxes to obtain a consumer바카라 사이트檚 agreement to make additional payments.
- Parliament recently passed legislation to give the CMA stronger consumer powers, which will enable the CMA to decide when consumer law has been broken without taking a case to court. The Digital Markets, Competition and Consumers Act 2024 will empower the CMA to fine those firms that do break consumer law up to 10% of their global turnover. The relevant sections of this legislation have not yet been brought into force.
- Media enquiries should be directed to press@cma.gov.uk or 020 3738 6460.