StubHub, Viagogo and Wayfair amongst 8 companies probed over on-line pricing and gross sales techniques
The Competition and Markets Authority also said it was writing to 100 businesses across 14 sectors outlining concerns about their use of additional fees and sales tactics
The competition watchdog has launched probes into StubHub, Viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical over their online pricing strategies.
The Competition and Markets Authority (CMA) announced that these investigations are the first to be initiated using its newly acquired consumer protection powers, following a comprehensive review of online pricing and sales practices across various sectors.
The watchdog also revealed it is penning letters to 100 businesses spanning 14 sectors, expressing concerns about their use of hidden charges and aggressive sales tactics.
Sarah Cardell, CMA chief executive, stated: “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.
“Whether you’re spending your hard-earned cash on concert tickets or driving lessons, joining a gym or buying furniture and appliances for your home, you deserve a fair deal.
“It’s our job to protect consumers from misleading prices and illegal pressure selling and today marks an important milestone as we take action across the economy to make sure businesses do the right thing by their customers.
“Since the launch of the new regime, we’ve been working hard to help businesses understand the law. But alongside supporting businesses to comply, we’ve always been clear that we will take swift action where we suspect potentially serious breaches of the law.
“This is just the start of our work. Any businesses who break consumer law should be in no doubt we will stamp out illegal conduct and protect the interests of consumers and fair-dealing businesses.”
The news comes after Coldplay and Dua Lipa are among a star-studded list of musicians calling on the government to prevent fans being “fleeced” by “parasitical” online ticket touts.
Radiohead, New Order, Mark Knopfler, Iron Maiden and PJ Harvey and this year’s Mercury Prize winner Sam Fender are also backing a campaign to cap the resale price of tickets. They have joined forces with consumer groups and the industry to call on PM Sir Keir Starmer to honour a pledge to protect fans. Other signatories include the watchdog Which?, FanFair Alliance, O2, the Football Supporters’ Association and organisations representing the music and theatre industries, venues, managers and ticket retailers.
Consumer group Which? says genuine fans have for years been “fleeced” or priced out of events by touts using online bots to buy tickets in bulk the moment they go on sale. They then sell them on for huge mark-ups on secondary ticketing websites such as Viagogo and Stubhub.
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