Close to a million users of deals website refunded £4m as regulator says change needed to sales practices
Close to one million customers of deals website Wowcher have been refunded £4m, the competition regulator has said.
The company has also agreed to change its sales practices, which the Competition and Markets Authority (CMA) was concerned could mislead or unfairly pressure consumers into making quick purchases.
Concern about business practices
The online retail and experiences platform used countdown clocks and claims such as “Running out!” and “In high demand!” to encourage buying but the CMA said the “overwhelming majority” of products on the site were still available at a similar price once the countdown timer ended.
It worried the messaging could create a false sense of urgency and influence people’s purchasing decisions for fear they could miss out.
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It was possible those tactics led to rushed purchases or more spending than shoppers had planned to bag a perceived bargain, the CMA added.
In November it was warned it could face court action unless it changes customer sales practices.
Millions refunded
More than £4m was returned to 870,000 customers who were signed up for Wowcher’s VIP membership by not unselecting a pre-ticked box.
Thousands were signed up via this method which the CMA said risked people being registered without their full understanding.
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Millions of people use Wowcher’s website, the CMA said, with the regulator’s actions going to “make a real difference” to users.
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It comes from the launch of an investigation by the regulator in March last year.