Hidden fees and pressure selling: 8 major firms investigated by watchdog

The Competition and Markets Authority (CMA) has launched investigations into eight well-known companies over concerns about "hidden fees" and pressure-selling tactics. High-profile names including StubHub, Viagogo, and Wayfair are among the firms being scrutinised in a major crackdown on online pricing practices. The watchdog is utilising its new consumer protection powers to investigate whether these businesses are violating the law by misleading customers about the true cost of goods and services.

Which companies are being investigated?

The CMA has named eight companies that are currently under investigation. The watchdog has stated it has "reason to suspect" these firms may have infringed consumer law, although no conclusions have yet been reached.

The companies and the specific practices being investigated include:

• StubHub and Viagogo - The secondary ticketing sites are being investigated over whether mandatory fees are included in the upfront price shown to customers
• Wayfair - The furniture retailer is being scrutinised regarding its "time-limited" sales and whether they genuinely end when stated
• Appliances Direct - Investigated for both time-limited sales and "default opt-ins" (where additional services are automatically added to the basket)
• Marks Electrical - Under investigation regarding default opt-ins
• AA Driving School and BSM Driving School - Scrutinised over how mandatory booking fees are presented to learner drivers
• Gold’s Gym - Investigated regarding the transparency of one-off joining fees for gym memberships

In addition to these eight investigations, the CMA has sent advisory letters to over 100 other businesses across 14 sectors, warning them to review their pricing practices.

What practices are being investigated?

The investigation focuses on online sales tactics that can cause consumers to unwittingly spend more than they had intended. The CMA is targeting two main practices, described in more detail below:

'Drip Pricing' explained

Drip pricing occurs when a customer sees an initial price for a product (such as a concert ticket), but mandatory fees are added (dripped) throughout the checkout process. By the time the customer reaches the payment screen, the final price is significantly higher than the original figure.

'Pressure Selling' explained

Pressure selling employs a range of psychological tactics that can make a customer rush into making a purchase. Common examples include countdown clocks (e.g., "Sale ends in 30 minutes!") or availability claims (e.g. "50 people are looking at this right now"). The CMA is concerned that in some cases, these claims may be misleading or false.

Why is this happening now?

Today's announcement marks a significant shift in how consumer law is enforced in the UK. Previously, the CMA often had to take companies to court to secure changes in behaviour. However, under the new Digital Markets, Competition and Consumers Act (DMCC), the regulator has been granted direct enforcement powers. This allows the CMA to decide whether consumer laws have been broken and, crucially, to fine businesses up to 10% of their global annual turnover if they are found to be non-compliant.

Sarah Cardell, Chief Executive of the CMA, 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. Whether you’re spending your hard-earned cash on concert tickets or driving lessons, joining a gym or buying furniture and appliances for your home, you deserve a fair deal. It’s our job to protect consumers from misleading prices and illegal pressure selling and today marks an important milestone as we take action across the economy to make sure businesses do the right thing by their customers".

What does this mean for you?

While the investigations are ongoing, the announcement serves as a reminder to be vigilant when shopping online. Below, we provide some simple tips to ensure you don't get caught out when shopping online:

1. Ignore the countdowns - Don't let a ticking clock pressure you into a purchase. Take your time to compare prices elsewhere.
2. Check the final figure - Always review the total cost at the very last stage of checkout before paying to ensure no "optional" extras have been added to your basket.
3. Report it - If you spot misleading pricing, you can report it to the CMA or Citizens Advice.

Further reading

• 25 money saving tips that could save you thousands
• 12 ways to save money on your food shop
• How to save money on your household bills
• Check out the Money to the Masses 'Deals of the week' page