The UK’s Competition and Markets Authority (CMA) is taking legal action against Emma, a popular mattress retailer, over potentially misleading online discounting practices.
- Emma is accused of utilising countdown timers and reference pricing to create urgency and mislead consumers.
- The CMA has been investigating these sales tactics over the past two years.
- Emma failed to comply with requests to amend its business practices, leading to court proceedings.
- The case highlights ongoing concerns with online retail sales tactics in the UK.
The UK’s Competition and Markets Authority (CMA) is pursuing legal action against the mattress retailer Emma, suspecting them of using misleading online discounting strategies. These tactics, widely recognised as urgency claims, typically involve countdown timers that are intended to hasten purchasing decisions by instilling a sense of immediacy among shoppers.
Emma’s use of countdown timers is not the only issue under scrutiny. The CMA’s investigation, ongoing for two years, is also concerned with ‘reference pricing.’ This refers to the practice of suggesting that a product was previously sold at a higher price, thereby indicating a false sense of savings for buyers. Such strategies can pressure consumers into hasty purchases when they might otherwise consider their options more carefully.
According to the CMA, the retailer was offered ample time to adjust its practices but failed to implement all necessary changes. George Lusty, CMA’s interim executive director, remarked that misleading sales tactics like discounts and countdown clocks could compel consumers to spend more than intended, driven by fear of missing out.
On 17 October, the CMA escalated the situation by filing a claim in the High Court, seeking enforcement to mandate Emma to revise its online sales approach. Lusty noted, ‘We have given Emma sufficient opportunity to alter the way it does business to address our concerns. They have failed to make all the changes that we require, which is why we’ve progressed to court action.’ This marks a significant step by the CMA to ensure fair consumer practices within the UK’s bustling online retail market.
The legal proceedings against Emma underscore the critical need for transparency and fair practices in online retail.
