CMA fines Wayfair, Appliances Direct and Gold’s Gym for misleading sales practices
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On 14 October 2026, the Competition and Markets Authority (CMA) fined Wayfair, Appliances Direct and Golds Gym a combined £6m for misleading sales and pricing practices. In addition to the significant fines. In two out of the three cases the CMA also ordered the businesses to refund affected consumers directly. These decisions show how the CMA is using its new consumer enforcement powers, and that businesses need to be aware of the risks in order to avoid enforcement action.
At a glance
- Three investigations, £6 million in fines. The fines were for false urgency claims, pre-ticked paid extras and hidden fees.
- Direct refunds to customers. Appliances Direct and Gold’s Gym must also compensate affected customers.
- Settlement pays. All three businesses received a 40% discount for settling early.
- Size is no defence. A four-site gym operator was investigated alongside a major online retailer.
- The trend is clear. Since gaining direct enforcement powers, the CMA has reportedly issued £12 million in fines and secured over £2 million in refunds.
| Business | What went wrong | Fine (after 40% settlement discount) | Customer redress |
| Wayfair | Wayfair Countdown timers and “limited time” deals that were not genuinely time-limited £4.8 million | £4.8 million | None |
| Appliances Direct | Pre-ticked paid extras at checkout and false urgency pop-ups | £1.2 million | Over £400,000, an average of about £25 per customer |
| Gold’s Gym | Joining fees left out of advertised membership prices | £45,000 | £50 or £10 each to 726 customers |
Wayfair: False urgency
What happened?
The CMA investigated online retailer Wayfair for its use of “Daily Deals” and 24-hour “Flash Deals” featuring prominent urgency claims including “Here Today, Gone Tomorrow” and countdown timers. Each of these claims suggested that customers must act fast in order to secure the deal, however the CMA found that frequently the products remained available at the same price, or, in some cases, a lower one, once the advertised deadline had passed.
Why it matters?
Under the DMCC Act, falsely stating that a product, or particular terms of purchase including, crucially, price, will be available only for a limited time (commonly referred to an urgency claim) is a commercial practice that is considered unfair in all circumstances. Whilst Wayfair approached the CMA for settlement and secured a reduction of 40% to the overall fine, it was still fined £4.8 million in relation to its urgency claims.
The lesson.
If a deal is advertised as ending at a certain time, it must actually end then. Countdown timers that reset, and “flash” offers that run again straight away, are high-risk.
Appliances Direct: Keep your options open
What happened?
The CMA identified two infringing behaviours:
- Automatic opt in on pre-ticked extras: At checkout, customers were automatically opted into chargeable “Remove & Recycle Your Old Appliance” and “Installation on Delivery” services.
- Urgency Claims: Pop-up banners claimed promotions were for a limited time only. In fact, materially similar promotions continued after the stated deadline.
Why it matters?
Customers must actively choose to pay for optional extras. They cannot be signed up by default. The CMA also required Appliances Direct to refund customers who paid for extras they had been opted into. Appliances Direct received a £1.2 million fine and was ordered to pay over £400,000 to customers directly affected by the opt-ins, an average of about £25 per customer in relation to the optional extras.
The lesson.
Every optional paid add-on should be unticked by default and selected positively by the customer.
Gold’s Gym: Transparency triumphs
What happened?
Gold’s Gym (UK) Limited, which operates four gyms in London, advertised annual and direct debit membership prices without including its joining fee. Where the total price did appear, it was presented in a way consumers were unlikely to notice.
Why it matters?
The DMMC Act is clear that, in order to ensure effective price transparency, the total price must be displayed clearly, up front, with no sneaky add on fees added later in the purchasing journey. The CMA fined Gold’s Gym £45,000 and ordered Golds Gym to refund 726 affected customers £50 or £10 each – depending on the type of membership.
The lesson
The headline price must be the price the customer will actually pay. Joining fees, admin fees, booking fees and any other compulsory charges must be included from the outset.
These decisions highlight a number of key trends in consumer law:
- The Benefit of Early Settlement: All three fines included a 40% discount for early settlement and constructive engagement. Many of the practices now targeted by the CMA are banned outright, so some investigations will be clear-cut. Businesses under investigation should consider settlement early, both to secure the maximum discount and to avoid the cost of defending a weak position.
- Fines are only part of the story: The CMA is keen to show that its regime delivers money back to consumers. Where customers have lost out, it is ordering direct refunds. The business must identify eligible customers and administer the payments itself, which can be time-consuming and expensive. The headline fine is rarely the whole bill.
- No de minimis threshold: Whilst the CMA has taken a number of notable actions against large businesses, there is no minimum size for CMA enforcement. Gold’s Gym, a four-site franchisee, faced an investigation, a fine and an order to compensate customers. Whilst investigations are stressful and expensive for any business, this is particularly true for smaller businesses with less resource to handle the time and financial commitments of an investigation, and prevention is always better than cure.
What should businesses do now?
The CMA is clearly targeting practices that have become commonplace but breach consumer law. We recommend that businesses selling to consumers review the full customer journey, from first advertisement to the end of the relationship, and in particular:
- Urgency claims: check that every countdown timer, “limited time” banner and flash sale is genuine and ends when stated.
- Checkout flows: remove any pre-ticked boxes for paid extras.
- Pricing displays: make sure headline prices include all unavoidable fees.
- Promotions history: check whether “limited” offers have been repeated or extended in ways that undermine the original claim.
How we can help
Our team has extensive experience advising on all aspects of consumer law compliance and defending businesses in CMA investigations. We can audit your customer journey, review promotional and pricing practices, and support you through any CMA engagement. For more information, please contact our Competition and Consumer experts.
INSIGHTS DISCLAIMER
Please be advised that this is an update which we think may be of general interest to our wider client base. The insights are not intended to be exhaustive or targeted at specific sectors as such, and whilst we naturally take every care in putting our articles together, they should not be considered a substitute for obtaining proper legal advice on key issues which your business may face.
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