The Competition and Markets Authority (CMA) has fined Wayfair and Appliances Direct a roughly £6m ($7.9m) for utilising deceptive promotional urgency and unapproved service opt-ins.
Online home goods retailer Wayfair received a £4.8m fine after an investigation found its website relied on false urgency tactics.
The retailer promoted goods through “Daily Deals”, 24-hour “Flash Deals”, and countdown timers alongside warnings that items were “Here Today, Gone Tomorrow”.
However, the watchdog established that numerous products remained on sale at identical or lower prices after deadlines passed, which could have exerted pressure on consumers to complete quick purchases.
In a statement to Retail Insight Network, a Wayfair spokesperson said: "Although we believe the fine is excessive and disproportionate, we take the CMA’s findings seriously and we chose to settle so we can continue to focus on serving our customers."
Electronics retailer Appliances Direct was penalised £1.2m for using recurring discount pop-ups and automatically adding services to customer orders.
It displayed banners offering £10 to £25 savings for a supposedly limited duration, yet the same codes reappeared over multiple days.
The company also used pre-ticked boxes to enrol shoppers in fee-paying recycling and installation services without their express consent.
It has been ordered to repay roughly £432,000 to affected buyers – averaging £25 per person – with the business contacting eligible customers directly.
Both retailers admitted breaking consumer protection rules and agreed to settle early, which secured a 40% discount on their respective penalties.
Alongside the two retailers, the CMA fined fitness franchise Gold’s Gym £45,000 for obscuring mandatory joining fees on annual and direct debit plans.
The gym operator must refund £9,220 across 726 members, with individual payments of £10 or £50 depending on the contract signed.
The penalties form part of the CMA’s cost-of-living programme.
Operating under enhanced statutory enforcement powers, the authority has secured almost £2.4m in customer refunds and imposed more than £12m in financial penalties across the last 18 months, targeting sectors such as travel, ticketing, and retail.
CMA consumer protection senior director Hayley Fletcher said: “At a time when many households are carefully managing their budgets, people shouldn’t lose out because of misleading sales tactics. The time is up for this kind of behaviour. Businesses must treat their customers fairly and make sure they comply with the law – or risk hefty fines.”
