The CMA is also urging consumers to report examples of misleading online practices more widely – including hidden charges or taxes added at the point of purchase; fake or misleading reviews; and subscription “traps” that look like introductory offers, which auto-renew and can be difficult to cancel.
George Lusty, the CMA’s senior director for consumer protection, said: “Now more than ever, every penny counts and the CMA is concerned that some businesses are using underhand tactics designed to part shoppers from their cash”.
“That’s why businesses using urgency and price reduction claims need to consult the CMA’s new advice. It outlines what businesses need to do when designing their online shopping experiences to be sure they comply with the law,” he said.
The government intends to introduce its planned Digital Markets, Competition and Consumer Bill in the current parliamentary session. The planned legislation includes significant reforms to UK competition and consumer protection laws and new powers allowing the CMA to impose significant fines in relation to consumer law breaches without first seeking a court order.
Angelique Bret, competition and consumer law expert at Pinsent Masons, said: “The CMA’s open letter suggests the authority is readying itself to open consumer protection investigations in this area and is prepared to take enforcement action against companies who do not follow the guidance. Indeed, on 31 March 2023, the CMA announced that it is investigating the use of urgency claims by the Wowcher Group. This adds to an earlier consumer protection investigation the CMA opened last November.”
“The Digital Markets, Competition and Consumer Bill will give the CMA equivalent powers to those it has under the competition law regime - to determine consumer law infringements without resorting to court proceedings and to fine companies up to 10% of turnover for breaches of the UK consumer protection rules. This will substantially increase compliance risk for businesses active in the UK,” she said.