Wayfair, Appliances Direct and Gold's Gym have been fined £6million over misleading sales tactics, with thousands of shoppers set to receive refunds.
Details of the fines
Wayfair and Appliances Direct were fined by the competitions watchdog for misleading customers with time-limited offers that did not end when they said they would. Appliances Direct was also found to have automatically opted customers into paid-for extras. Gold’s Gym was fined for not giving the total price for memberships, including the joining fee, in a clear and timely way.
Wayfair was fined £4.8million, while Appliances Direct was fined £1.2million and will refund customers £432,000. Gold’s Gym was fined £45,000 and will pay back around £9,000 to shoppers. Appliances Direct customers will receive refunds of £25 each on average while Gold's Gym customers will get refunds of up to £50.
Refunds and settlement
Shoppers will be contacted if they are due a refund. The Competitions and Markets Authority (CMA) said all three firms received a 40% reduction in their fines as they admitted to breaking the law and agreed to settle the case early.
Hayley Fletcher, Senior Director for Consumer Protection at the CMA, said: “Whether buying a new sofa, a washing machine, or joining a gym, people should see genuine, accurate prices and offers – and decide for themselves whether they want optional extras.
“At a time when many households are carefully managing their budgets, people shouldn’t lose out because of misleading sales tactics.
“The time is up for this kind of behaviour. Businesses must treat their customers fairly and make sure they comply with the law – or risk hefty fines.”
Company and consumer responses
A Wayfair spokesperson said: "Although we believe the fine is excessive and disproportionate, we take the CMA’s findings seriously and we chose to settle so we can continue to focus on serving our customers."
The Mirror has contacted Buy It Direct Group, parent company of Appliances Direct, and Gold's Gym for comment.
Sue Davies, Head of Consumer Rights Policy at Which?, said: “Which? has repeatedly exposed dodgy sales tactics from major firms, so it’s absolutely right that the regulator is taking strong action against businesses who mislead their customers with phony bargains.
“The refunds secured by the CMA are a much-needed win for consumers at a time when household budgets are under strain. This will help to give people confidence that the regulator is prepared to step in to protect their rights.”
