CMA fines Wayfair, Appliances Direct and Gold's Gym about £6m over misleading sales tactics
The Competition and Markets Authority has fined Wayfair, Appliances Direct and Gold's Gym about £6m in total over misleading time-limited offers and unclear membership pricing. Appliances Direct and Gold's Gym must refund customers about £440,000.
Updated (version 2). New coverage since the last version from City A.M..
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The story, neutrally told
Centre · 2The Competition and Markets Authority (CMA) has fined three firms, Wayfair, Appliances Direct and Gold's Gym, about £6m in total over misleading sales tactics. BBC NewsN “The Competition and Markets Authority has fined Wayfair, Appliances Direct, and Gold's Gym £6m in total.” Read at BBC News ↗ Evening StandardN “Three major firms have been fined £6 million for misleading sales tactics, the competition watchdog said.” Read at Evening Standard ↗ Centre · 2Wayfair was fined £4.8m and Appliances Direct £1.2m for misleading customers with time-limited offers that did not end when they said they would. BBC NewsN “fined the online furniture retailer £4.8m and electronics retailer Appliances Direct £1.2m for misleading customers with time-limited offers.” Read at BBC News ↗ Evening StandardN “Wayfair and Appliances Direct were fined for misleading customers with time-limited offers that did not end when they said they would” Read at Evening Standard ↗ Right · 1City A.M. reports that the CMA found products on Wayfair's website advertised through 'Daily Deals' and 24-hour 'Flash Deals', with messages such as 'Here Today, Gone Tomorrow' and countdown timers, while many remained available at the same price or lower after the stated deadline. City A.M.RC “products were advertised on Wayfair’s website through ‘Daily Deals’ and 24-hour ‘Flash Deals’, alongside messages such as ‘Here Today, Gone Tomorrow’ and countdown timers.”“many products remained available at the same price or lower after the stated deadline” Read at City A.M. ↗
Centre · 1The Evening Standard adds that Appliances Direct also automatically opted customers into paid-for extras. Evening StandardN “while Appliances Direct also automatically opted customers into paid-for extras.” Read at Evening Standard ↗ Centre · 2Gold's Gym was fined for not giving the total price of memberships, including the joining fee, in a clear and timely way; the BBC puts the fine at £48,000 and the Evening Standard at £45,000. BBC NewsN “Gold's Gym has been fined £48,000 for not telling customers the total price of memberships.” Read at BBC News ↗ Evening StandardN “Gold’s Gym £45,000 and ordered to refund customers about £9,000.” Read at Evening Standard ↗ Centre · 2Appliances Direct and Gold's Gym were ordered to refund customers about £440,000 in total; the Evening Standard breaks this down as about £432,000 from Appliances Direct and about £9,000 from Gold's Gym. Evening StandardN “ordered it to refund customers about £432,000” Read at Evening Standard ↗ BBC NewsN “Appliances Direct and Gold's Gym have been ordered to refund customers a total of £440,000.” Read at BBC News ↗
Centre · 1The CMA said both firms would contact affected customers about refunds and that customers do not need to take any action. Evening StandardN “The CMA said both firms would contact affected customers about their refund, and customers do not need to take any action.” Read at Evening Standard ↗ Right · 1According to City A.M., the CMA said all three parties engaged constructively, admitted breaking the law and agreed to settle early, and so received a 40 per cent reduction in their fines. City A.M.RC “admitted to breaking the law and agreeing to settle the case early with the CMA”, so they received a 40 per cent reduction in their fine.” Read at City A.M. ↗ Centre · 1Hayley Fletcher, the CMA's senior director for consumer protection, said people should see genuine, accurate prices and offers and decide for themselves whether they want optional extras, adding that businesses must treat customers fairly "or risk hefty fines". Evening StandardN “people should see genuine, accurate prices and offers – and decide for themselves whether they want optional extras.”“Businesses must treat their customers fairly and make sure they comply with the law – or risk hefty fines.” Read at Evening Standard ↗
Mixed · 2The BBC said it had contacted the three companies for comment, and City A.M. said Appliances Direct and Gold's Gym were contacted; the BBC and Evening Standard reports include no company response. BBC NewsN “The BBC has contacted the three companies for comment.” Read at BBC News ↗ City A.M.RC “Appliances Direct and Gold’s Gym were contacted for comment.” Read at City A.M. ↗ Right · 1A Wayfair spokesperson said it believes the fine is "excessive and disproportionate" but that it takes the CMA's findings seriously and chose to settle so it can focus on serving customers. City A.M.RC “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.” Read at City A.M. ↗
Every sentence links to the reporting it rests on. The pill in front of each says where its sources sit: Left, Centre or Right when one side supplies at least half of them, Mixed when they are evenly split. The number is how many outlets it cites.
Left0 outlets
No left outlet in our sources has covered this story yet.
Centre2 outlets
- Framing
- Both outlets report the CMA's enforcement action as a straightforward consumer-protection story, leading on the total fine and the firms named. The Evening Standard leads on refunds to customers.
- Emphasis
- The fine amounts per firm, the nature of each breach, and refunds. The Evening Standard also carries the CMA's quote about household budgets.
- Leaves out or plays down
- Neither report includes a response from the companies, the 40 per cent settlement discount or details of Wayfair's 'Flash Deals'. The BBC piece is brief and omits the opt-in extras and the CMA quote. The two give different figures for the Gold's Gym fine.
- For example
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“Customers of Appliances Direct and Gold’s Gym will receive about £440,000 in refunds as a result of the action.” — Evening Standard
“Gold's Gym has been fined £48,000 for not telling customers the total price of memberships.” — BBC News
Right1 outlet
- Framing
- City A.M. leads on Wayfair, the 'online retail giant', and puts the fine in quotation marks as 'misleading' in its headline. It gives the most detail on how the offers worked and includes Wayfair's objection to the fine.
- Emphasis
- Wayfair's 'Daily Deals' and 'Flash Deals', the 40 per cent settlement discount, and Wayfair's statement calling the fine excessive.
- Leaves out or plays down
- Does not mention Appliances Direct's automatic opt-in to paid extras, which the Evening Standard reports.
- Charged language
- “hit with”“online retail giant”
What every side reports
- The CMA fined Wayfair £4.8m and Appliances Direct £1.2m over misleading time-limited offers.
- Gold's Gym was fined for not clearly giving the total price of memberships.
- Appliances Direct and Gold's Gym customers will receive about £440,000 in refunds.
- The three fines total about £6m.
Where accounts differ
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Size of the Gold's Gym fine
- Centre
- The BBC reports £48,000; the Evening Standard reports £45,000.
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The CMA fined Wayfair £4.8m for misleading customers with time-limited offers.
Supported- Supports 3
- BBC News, Evening Standard, City A.M.
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Appliances Direct and Gold's Gym were ordered to refund customers about £440,000 in total.
Supported- Supports 3
- BBC News, Evening Standard, City A.M.
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Gold's Gym was fined £45,000.
Supported- Supports 2
- Evening Standard, City A.M.
- Earlier 1
- BBC News
Competition and Markets Authority organisation
The CMA presents the fines as protecting households managing tight budgets and warns businesses to comply with the law or face hefty fines.
“At a time when many households are carefully managing their budgets, people shouldn’t lose out because of misleading sales tactics.” — Evening Standard
Left0 articles
No coverage yet.
Centre2 articles
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Wayfair among firms fined millions for misleading sales tactics
Neutral Brief factual report of the fines and refunds, noting the companies have been contacted for comment.
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Wayfair and Appliances Direct among firms fined £6m for misleading sales tactics
Neutral Detailed report leading on refunds, with breach details and a CMA official's warning to businesses.
Right1 article
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Wayfair among firms hit with £6m fine for ‘misleading’ sales tactics
Neutral Wayfair-led report with detail on the deal wording, the settlement discount and the company's objection to the fine.
- 14 Oct 10:24 First BBC NewsN Wayfair among firms fined millions for misleading sales tactics
- 14 Oct 10:36 +12m Evening StandardN Wayfair and Appliances Direct among firms fined £6m for misleading sales tactics
- 14 Oct 12:18 +1h 54m City A.M.RC Wayfair among firms hit with £6m fine for ‘misleading’ sales tactics
Times are when each article was published, or when we first saw it if the outlet gave no time.
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