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CMA fines three firms £6 million for misleading sales tactics

The Competition and Markets Authority (CMA) has fined Wayfair, Appliances Direct, and Gold's Gym a total of £6 million for misleading sales practices. Customers will receive approximately £440,000 in refunds.

  • Wayfair was fined £4.8 million for false time-limited offers.
  • Appliances Direct was fined £1.2 million and ordered to refund customers around £432,000 for misleading offers and pre-ticked optional extras.
  • Gold's Gym was fined £45,000 and ordered to refund around £9,000 to customers for not clearly showing total membership prices.

The Competition and Markets Authority (CMA) has issued fines totalling £6 million to three businesses for engaging in misleading sales tactics. Wayfair, Appliances Direct, and Gold's Gym were penalised following investigations into their practices.

Wayfair received a £4.8 million fine for advertising products with 'Daily Deals' and 'Flash Deals' that implied urgency, despite many items remaining available at the same or lower prices after the stated deadlines. Appliances Direct was fined £1.2 million for similar false time-limited offers and for automatically opting customers into paid-for services like appliance removal or installation without explicit consent. Appliances Direct will refund approximately £432,000 to affected customers, with average payouts of £25 per customer.

Gold's Gym, a UK franchise operating four gyms in London, was fined £45,000. The CMA found that the gym failed to clearly include mandatory joining fees in the total price displayed for annual and Direct Debit memberships. Gold's Gym is ordered to refund a total of £9,220 to 726 affected customers, with individual refunds of either £10 or £50 depending on the membership type.

All three businesses engaged constructively with the CMA, admitted to breaking the law, and settled early, resulting in a 40% reduction in their fines. This action is part of the CMA's broader efforts to address cost of living pressures, using strengthened consumer protection enforcement powers.

Why this matters: Misleading sales tactics can pressure consumers into making quick purchases or paying for unwanted extras, impacting household budgets, especially when many are carefully managing their finances.

What this means for you: If you were an Appliances Direct customer affected by automatic opt-ins, you could receive an average refund of £25. If you were a Gold's Gym customer affected by unclear membership pricing, you could receive a refund of either £10 or £50.

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