United Kingdom: Issued CMA order requiring Wowcher to change its online selling practices securing over GBP 4 million in refunds for Wowcher customers

Description

Issued CMA order requiring Wowcher to change its online selling practices securing over GBP 4 million in refunds for Wowcher customers

On 19 July 2024, the Competition and Markets Authority (CMA) announced that it has secured over GBP 4 million in refunds for 870'000 Wowcher customers who were signed up for VIP membership via pre-ticked boxes following an investigation into the company's sales practices. The investigation, initiated due to concerns over Wowcher's use of misleading countdown timers and urgency claims, determined that these tactics could create a false sense of urgency, pressuring customers into making hasty purchases. These practices were found to be misleading as many products continued to be available at similar prices after the timers expired. Wowcher has agreed to change its promotional tactics, ensuring that all marketing claims about product availability and demand are clear and accurate. Furthermore, Wowcher will remove misleading countdown timers from their homepage and will stop using pre-ticked boxes for VIP membership sign-ups, which often leads customers to unwittingly subscribe to paid services. The refunds of 870’000 will be provided as credits, with the option to convert them into cash.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
platform intermediary: e-commerce
Implementation Level
national
Government Branch
executive
Government Body
competition authority

Complete timeline of this policy change

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2023-03-31
under deliberation

On 31 March 2023, the UK's Competition and Markets Authority (CMA) opened an investigation into Wow…

2023-11-16
under investigation

On 16 November 2023, the Competition and Markets Authority (CMA) issued an order requiring Wowcher…

2024-07-19
under investigation

On 19 July 2024, the Competition and Markets Authority (CMA) announced that it has secured over GBP…