Britain’s competition regulator has opened investigations into eight companies, including leading ticket resellers StubHub and Viagogo , over hard sell online pricing practices.
The companies being probed by the Competition and Markets Authority (CMA) are StubHub, Viagogo, AA Driving School, BSM Driving School, Gold's Gym, Wayfair, Appliances Direct and Marks Electrical.
It is the first time the CMA has used new consumer protection powers to launch an investigation into anti-competitive behaviour.
The latest crackdown comes after it was revealed reselling tickets for profit is to be outlawed under plans due to be announced by the Government tomorrow.
Ministers had been originally considering allowing companies and ordinary consumers to sell on a ticket for up to 30% above the original face value but it is now thought that reselling a ticket at anything more than the original face value will be banned.
It comes after dozens of world-renowned artists – including Radiohead, Dua Lipa and Coldplay - issued a plea to Keir Starmer to deliver on Labour’s general election manifesto pledge by stopping “pernicious” touts.
Under today’s seperate CMA move StubHub and Viagogo are being investigated for "mandatory additional charges" applied when consumers buy tickets.
AA Driving School and BSM Driving School are also being probed over mandatory fees on these sites and whether they are displayed at the start of the purchasing process
Gold's Gym is under investigation for how it displays a one-off joining fee for its annual membership.
Wayfair is being investigated over whether time-limited sales ended when it said they would.
Marks Electrical is being investigated over whether customers are automatically opted-in to additional services, and Appliances Direct is being investigated for both of these practices
CMA chief executive Sarah Cardell said: "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."
Today’s move comes after a major review launched in April, which examined more than 400 businesses from different sectors to assess whether their behaviour on price transparency met current standards.
The CMA is today writing to 100 businesses to express concerns about their use of additional fees and sales tactics.
High pressure sales techniques it has examined include practices drip pricing, pressure selling, and misleading countdown clocks
Under the Digital Markets, Competition and Consumers Act the CMA can now decide itself if consumer laws have been broken rather than having to go through the courts.
It can order businesses to pay compensation to affected customers, and fine companies up to 10% of global turnover.
The CMA has said it is looking into practices including drip pricing - when consumers are landed with additional fees on top of the headline price when they get to the checkout process - and misleading countdown clocks.
The 100 companies the CMA has contacted operate in a range of sectors, including travel, retail, airport parking, luggage storage providers, cinemas,food and drink delivery companies, gyms and fitness, online vouchers , as well as tickets for popular live events such as music concerts.
AA Driving School said: “We are comfortable that the £3 booking fee for lessons is already transparent and in line with the CMA’s rules.”
Viagogo said: “We have continually engaged constructively with the CMA and will be fully cooperating with their investigation.”
Katrina Anderson, Principal Associate at law firm, Mills & Reeve, said: “Today’s news is a serious warning shot for all consumer businesses given the CMA’s new powers to directly fine traders up to 10% of their annual global turnover for breaches of this legislation, without the need for court proceedings. It can also order businesses to pay compensation to affected customers.
“At a time when building trust and consumer loyalty is key to business success, you can’t afford to be on the wrong side of this legislation.”
