CMA fines Wayfair, Appliances Direct and Gold's Gym £6m

What the CMA found

The three firms are Wayfair, Appliances Direct and Gold's Gym (UK) Limited. Each admitted breaking the law and settled early, which cut its fine by 40%, according to the CMA. Hayley Fletcher, Senior Director for Consumer Protection at the CMA, said: 'The time is up for this kind of behaviour.'

Wayfair

Wayfair was fined 4.8 million pounds, the largest of the three penalties. The CMA said it ran 'Daily Deals' and 24-hour 'Flash Deals' with messages such as 'Here Today, Gone Tomorrow' and countdown timers, suggesting shoppers had to act fast. In fact many products stayed at the same or a lower price after the deadline, so the time limits were false. The CMA's announcement does not mention refunds for Wayfair customers.

Appliances Direct

Appliances Direct was fined 1.2 million pounds for two practices. Pop-up countdown banners claimed discounts of 10 to 25 pounds were available for a limited time, but the same discount codes appeared again and again over many days, the CMA said. The retailer also added one or both of two paid extras, 'Remove & Recycle Your Old Appliance' and 'Installation on Delivery', to orders without customers choosing them.

Customers charged for those extras will get around 432,000 pounds back between them, an average of 25 pounds each, the CMA said.

Gold's Gym

Gold's Gym (UK) Limited, a franchise running four gyms in London, was fined 45,000 pounds. It left its mandatory joining fee out of the total price shown for annual and Direct Debit memberships, or showed the total in a way customers were unlikely to see, according to the CMA. It will refund 9,220 pounds to 726 customers, who will each receive 50 pounds or 10 pounds depending on their membership type.

Getting money back

Refunds are automatic. Affected Appliances Direct and Gold's Gym customers will be contacted by letter or email and refunded to the original payment method, or sent another form of payment such as a cheque, the CMA said. They do not need to do anything. The CMA's guide to getting money back after it orders refunds is listed in the sources below.

The rules behind the fines

The Digital Markets, Competition and Consumers Act 2024 lets the CMA fine businesses up to 10% of global turnover, or 300,000 pounds if that is higher, for breaking consumer law. Under the Act a price must include all mandatory fees, the rule Gold's Gym broke, and false limited-time offers are banned outright, which covers the Wayfair and Appliances Direct countdowns.

Charging for optional extras without the customer's express consent is banned by separate 2013 consumer contract regulations, the rule behind the Appliances Direct refunds. Over the last 18 months the CMA has imposed fines of more than 12 million pounds and secured nearly 2.4 million pounds in refunds under its new consumer protection powers.

Source: CMA: CMA fines firms 6 million for misleading sales tactics.

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Frequently asked questions

How much was each business fined?

The CMA fined Wayfair 4.8 million pounds, Appliances Direct 1.2 million pounds and Gold's Gym 45,000 pounds, a combined 6 million pounds.

How much will customers get back?

The CMA said customers will receive around 440,000 pounds in refunds, made up of around 432,000 pounds from Appliances Direct and 9,220 pounds from Gold's Gym.

Do customers need to do anything to get a refund?

No. Affected Appliances Direct and Gold's Gym customers do not need to do anything: the businesses will contact them by letter or email and refund the original payment method or send another form of payment such as a cheque.

Why was Wayfair fined?

The CMA said Wayfair used 'Daily Deals' and 24-hour 'Flash Deals', with messages such as 'Here Today, Gone Tomorrow' and countdown timers, suggesting shoppers had to act fast, but many products stayed at the same or a lower price after the deadline, so the time limits were false.

Why was Appliances Direct fined?

The CMA said pop-up countdown banners claimed discounts of 10 to 25 pounds were available for a limited time, but the same discount codes appeared again and again over many days. It also automatically added one or both of two paid extras to customers' orders, 'Remove & Recycle Your Old Appliance' and 'Installation on Delivery', without customers choosing them.