Competition watchdog warns 19 travel firms over online pricing

Travel companies are among 100 businesses targeted by the competition watchdog as part of a clampdown online pricing practices.

 

The Competition and Markets Authority (CMA) confirmed that advisory letters are being sent “outlining concerns about the use of additional fees and online sales tactics” including drip pricing.

 

The 100 businesses are across 14 sectors, including travel, following a major cross-economy review since April of more than 400 firms “to assess compliance with the rules on price transparency”. 

 

Nineteen travel companies have been identified - more than any other sector.  

 

The CMA put businesses “on notice”, however no specific details of the travel firms targeted were revealed. 

 

The letters target sectors where the CMA identified potential concerns, as well as key areas of spending, such as holidays, including package travel; rail travel; parking and airport parking; and bus and coach travel.

 

Others include driving schools, homeware retailers luggage storage providers, cinemas, live event tickets, food and drink delivery companies, letter and parcel delivery, gyms and fitness, fashion and online vouchers.

 

The CMA said: “These sectors collectively serve tens of millions of UK consumers every year. 

 

“From January to June alone, UK residents made over 44.7 million trips overseas, spending an estimated £38.6 billion."

 

The CMA noted: “They must now review their practices and ensure they are in line with the law - and the CMA’s pricing guidance and unfair commercial practices guidance - to avoid the risk of future enforcement action.

 

“The CMA will continue to engage with those businesses to ensure they take the steps needed to comply with the law - or otherwise face future enforcement action.”

 

Investigations have been opened into eight non-travel firms under new CMA consumer protection powers, including two secondary ticketing sites, two driving schools, a gym company and three homeware retailers.

 

The CMA said: “Practices such as failing to include mandatory charges upfront, introducing unavoidable fees at checkout, and presenting misleading headline prices that exclude compulsory costs have been unlawful for years under the Consumer Protection from Unfair Trading Regulations 2008. 

 

“This is why the CMA’s early enforcement action and advisory letters focus on possible breaches related to these issues.

 

“Other elements of the law have only recently been updated, and the CMA has published its finalised price transparency guidance today, following consultation with businesses.”

 

CMA chief executive Sarah Cardell 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.

 

"Whether you’re spending your hard-earned cash on concert tickets or driving lessons, joining a gym or buying furniture and appliances for your home, you deserve a fair deal.

 

"It’s our job to protect consumers from misleading prices and illegal pressure selling and today marks an important milestone as we take action across the economy to make sure businesses do the right thing by their customers.

 

"Since the launch of the new regime, we’ve been working hard to help businesses understand the law. But alongside supporting businesses to comply, we’ve always been clear that we will take swift action where we suspect potentially serious breaches of the law.

 

"This is just the start of our work. Any businesses who break consumer law should be in no doubt we will stamp out illegal conduct and protect the interests of consumers and fair-dealing businesses."