Marks Electrical has been ordered to refund nearly 40,000 customers and pay a £720,000 fine after the Competition and Markets Authority (CMA) found the retailer automatically opted customers into extra services without their agreement.
Refunds and Penalties
The retailer will pay affected customers an average of £15 each, totalling approximately £600,000, for automatically signing them up to either its “Recycle Old Appliance” or “Unwrap & Recycle Packaging” service, or both. Additionally, a £720,000 fine has been imposed.
CMA Investigation
The CMA’s investigation focused on the retailer’s conduct from April 2025, when new consumer powers came into effect. Under consumer law, businesses must give consumers a genuine choice over whether to pay for extra products or services, and pre-ticked boxes or automatic opt-ins for paid extras are prohibited.
Marks Electrical stopped these practices immediately after the investigation began and cooperated constructively. The company admitted to breaking the law and settled early, resulting in a 40% reduction to the fine.
Customer Refund Process
Affected customers do not need to take any action. Marks Electrical will contact them directly and refund the amount to the original payment method. If that is not possible, a cheque will be issued. The refund amount will vary based on what customers paid for the extra services.
CMA Statement
Emma Cochrane, CMA executive director of consumer protection, said: “The law is absolutely clear that automatically opting customers into extra charges is never okay. Buying a new washing machine, dishwasher or cooker is expensive and people should have the right to decide if they want optional extras – not be landed with costs that they did not agree to. All businesses need to check their policy on automatic opt-ins – the bottom line is that they should not be used. If businesses break the law, we’ll continue to issue fines and secure refunds for people.”
