Wayfair has been fined £4.8 million, Appliances Direct faces a £1.2 million penalty and ordered to refund customers around £432,000, while Gold’s Gym was fined £45,000 and ordered to refund approximately £9,000. These penalties are part of the CMA's efforts to protect consumers, having secured over £12 million in fines and nearly £2.4 million in refunds in the last 18 months.
The investigation found that Wayfair and Appliances Direct misled customers with time-limited offers that did not end as advertised. Appliances Direct also automatically enrolled customers into paid-for extras. Gold’s Gym failed to clearly present the total price of memberships, including mandatory joining fees.
Hayley Fletcher, Senior Director for Consumer Protection at the CMA, stated, "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."
Wayfair advertised products with 'Daily Deals' and 'Flash Deals', using messages like 'Here Today, Gone Tomorrow' and countdown timers. However, the CMA found that many products remained available at the same or lower prices after the stated deadline, constituting a false time-limited offer.
Appliances Direct automatically opted customers into services such as 'Remove & Recycle Your Old Appliance' and 'Installation on Delivery'. Consumer law requires express agreement for such optional extras, prohibiting pre-ticked boxes. The company also used countdown banners for discounts that were repeatedly available, potentially pressuring customers.
Gold’s Gym, operating four gyms in London, failed to clearly display the total price for memberships, including the joining fee, which is illegal. Businesses must show the total price, including all mandatory fees, clearly from the outset.
All three businesses received a 40% reduction in their fines for engaging constructively with the CMA, admitting to breaches, and agreeing to early settlement. Appliances Direct and Gold’s Gym will contact affected customers directly regarding refunds; no customer action is required.
These actions are part of the CMA's broader work to address cost of living pressures, utilising its strengthened consumer protection enforcement powers.
