Wowcher has agreed to refund more than £4 million to customers and change its high-pressure sales practices after complaints that they misled people into making spot purchases.
The Competition and Markets Authority launched an investigation last year over concerns that Wowcher’s countdown timers and marketing claims – such as ‘Running out!’ and ‘In high demand!’ – created a false sense of urgency and influenced people’s purchasing decisions.
In particular, the CMA was concerned that the overwhelming majority of products on Wowcher’s site continued to be available at a similar price once the daily countdown timer had ended.
It has secured undertakings from Wowcher to change its approach, with only clear and accurate claims about the availability of products and services to be shown on Wowcher’s website.
It will also remove its permanent countdown timer at the top of its homepage which states that deals will refresh at midnight, suggesting those deals may then change or end.
The CMA was also concerned about Wowcher’s use of pre-ticked boxes to sign thousands of customers up to its paid-for ‘VIP membership’, which risks customers being signed up without their full understanding.
More than 870,000 of these customers will receive a credit refund – with the option to exchange to cash – to ensure they are fully aware of what they are agreeing to.
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Based on information provided by Wowcher, the CMA expects refunds for those affected will total over £4 million.
The undertakings see Wowcher avoid being taken to court by the CMA.
“Pressure selling tactics – such as countdown timers and urgency claims that may create a false impression people must ‘Buy now!’ or miss out – can push shoppers into making snap decisions or spending more than they planned,” said Sarah Cardell, chief executive at the CMA.
“Our action will make a real difference for the millions of people who use Wowcher. Consumers who shop on the site can now have more confidence in the claims they see before parting with their hard-earned cash – and hundreds of thousands will soon see refunds, totalling a hefty £4m.
“We encourage all Wowcher customers to check their emails and texts from the company to keep an eye out for a credit alert – which they can exchange to cash should they wish.”
To ensure Wowcher is complying with the commitments it signed, the firm must regularly report back to the CMA over the coming year.