(Reuters) -Britain’s competition regulator on Tuesday launched investigations into eight businesses spanning ticketing sites, fitness chains and retailers, using its new powers after reviewing online pricing and sales practices in the UK.
The businesses under investigation include ticketing sites StubHub and viagogo, fitness chain Gold’s Gym and homeware retailer Wayfair.
The Competition and Markets Authority said it was probing the companies over suspected breaches of consumer law related to online pricing practices, including drip pricing and the use of misleading countdown timers.
Drip pricing, prevalent in event and cinema tickets and gym memberships, is the practice of advertising an initial price but failing to include mandatory charges upfront and introducing unavoidable fees at checkout.
Under powers granted by the Digital Markets, Competition and Consumers Act 2024, the CMA can fine companies up to 10% of their global turnover and order them to compensate customers if it finds that they have broken the law.
“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,” CMA chief executive Sarah Cardell said in a statement.
StubHub and viagogo are under review over mandatory additional charges applied when consumers buy tickets, and whether or not these fees are included upfront, the regulator said.
The CMA, which reviewed more than 400 businesses across 19 sectors since April, is also sending advisories to 100 firms across various industries, outlining concerns about their use of additional fees and online sales tactics.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)
