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The UK competition watchdog has used its new powers to launch a major crackdown on allegedly deceptive online pricing practices, opening investigations into eight companies including ticketing websites StubHub and Viagogo.
The Competition and Markets Authority said it had written to 100 businesses in 14 sectors, raising concerns about their use of additional fees and other sales tactics, having conducted a review since April of potentially illegal online methods. These include drip-pricing — the practice of adding extra fees to an initially low price — and pressure selling.
The move comes as UK ministers are set to announce plans to outlaw the resale of tickets for live events above face value, a clampdown that contributed to a fall on Monday of almost 14 per cent in shares in StubHub, which resells tickets under the StubHub brand in North America and the Viagogo brand elsewhere.
The other companies being investigated by the CMA under powers granted by last year’s Digital Markets, Competition and Consumers Act are the AA and BSM driving schools, Gold’s Gym, and the homeware retailers Wayfair, Appliances Direct and Marks Electrical.
The CMA said if it found “an infringement of the law” it could order companies to pay compensation to affected customers as well as fining them up to 10 per cent of global turnover.
Sarah Cardell, chief executive of the CMA, said: “At a time when household budgets are under constant pressure and we’re all hunting for the best deal possible, it’s crucial that people are able to shop online with confidence, knowing that the price they see is the price they’ll pay, and any sales are genuine.”
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