The Competition and Markets Authority (CMA) has initiated court action against the online retailer Emma, citing the company’s failure to address concerns regarding potentially misleading sales practices. This decision follows an investigation into Emma’s use of discounts, urgency claims, and reference pricing that may not align with consumer protection laws.
The CMA began its inquiry after identifying issues with Emma’s marketing tactics, including countdown timers and prompts suggesting high demand, which could pressure consumers into making hasty purchasing decisions. In response, the CMA urged Emma to implement necessary changes and commit to undertakings that would ensure fair treatment for shoppers.
However, Emma’s failure to adequately address the CMA’s concerns has led to this escalation. George Lusty, Interim Executive Director for Consumer Protection and Markets at the CMA, stated, “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.
The CMA expressed particular concern that misleading sales tactics can result in consumers spending more than they intended, driven by a fear of missing out on deals. While court proceedings are set to unfold, Emma still has the option to rectify its practices by consenting to an order or providing undertakings to the court prior to the hearing.
This legal action is part of a broader initiative by the CMA to monitor and address online sales practices, particularly those that employ pressure selling tactics. Recently, the CMA successfully negotiated changes to the practices of Simba Sleep, ensuring that any “was” prices accurately reflect previous sales volumes.
Looking ahead, the CMA anticipates gaining the authority to independently determine violations of consumer law by April 2025, with the potential to impose fines of up to 10% of a company’s global turnover if warranted. Firms will retain the right to appeal such decisions in court.
The CMA’s commitment to safeguarding consumer rights remains strong as it seeks to foster transparency and fairness in online retail.
