Retail

The Competition and Markets Authority has fined three businesses £6 million for misleading sales tactics.

Wayfair and Appliances Direct were fined for misleading customers with time-limited offers that did not end when they said they would – and Appliances Direct for also automatically opting customers into paid-for extras. 

Meanwhile Gold’s Gym was fined for not giving the total price for memberships, including the joining fee, in a clear and timely way.

The CMA’s investigation found that 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, which implied customers needed to act quickly to get the best deal. 

The investigation found that many products remained available at the same price or lower after the stated deadline – so the time-limited offer was false. By stating these were one-day offers, people could have felt pressure to make a quick purchase so as not to lose out, it said.

Wayfair must pay a penalty of £4.8m as a result of the practice.

The US eCommerce giant, led by co-founder and CEO Niraj Shah (pictured), generated revenue of $12.46bn in 2025.

The CMA’s investigation found that customers of Huddersfield-based Appliances Direct were automatically opted into a ‘Remove & Recycle Your Old Appliance’ service or ‘Installation on Delivery service’ – or both.

Under consumer law, businesses must get customers’ express agreement before charging them for optional extras, the CMA said. Pre-ticked boxes and other forms of automatic opt-in are not allowed. 

Appliances Direct also used pop-up countdown banners on some product pages which claimed that discounts of £10 to £25 were available for a limited time, but the CMA found that the same discount codes appeared repeatedly over many days. 

The CMA has fined Appliances Direct £1.2m and ordered it to pay around £432,000 in refunds to customers affected by opt-ins – with average pay outs being £25 per customer. Its 2025 revenue was $236m.

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The CMA also found that Gold’s Gym, a UK franchise that operates four gyms in London, failed to include the joining fee in the total price shown to consumers for their annual and Direct Debit memberships, or the total price was shown in a way that was unclear and unlikely to be seen. This practice is illegal.

The CMA has ordered Gold’s Gym to refund a total of £9,220 to the 726 affected customers. The amount repaid to each customer will depend on the type of membership they bought, but it will be either £50 or £10. Gold’s Gym has been fined £45,000.

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All three parties engaged constructively with the CMA, admitted to breaking the law and agreed to settle the case early. That meant the businesses received a 40% reduction in their fine.

Hayley Fletcher, senior director for consumer protection at the CMA, said: “Whether buying a new sofa, a washing machine, or joining a gym, people should see genuine, accurate prices and offers – and decide for themselves whether they want optional extras. 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.”

Appliances Direct and Gold’s Gym will contact affected customers about their refund. Customers do not need to take any action.

In the last 18 months, the CMA has imposed fines of more than £12m and secured nearly £2.4m in refunds for customers using its new consumer protection enforcement powers.

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