The UK Competition and Markets Authority (CMA) is taking court action against mattress seller Emma over potentially misleading online discount tactics.
- The CMA began investigating Emma two years ago due to the use of countdown timers and reference pricing on its website.
- Countdown timers create urgency by indicating limited time offers, which may pressurise consumers into hasty purchasing decisions.
- Despite being asked to amend its pricing strategies, Emma has not fully resolved the CMA’s concerns about potential consumer deception.
- CMA Executive George Lusty emphasises the need for legal action as Emma has not adequately addressed all necessary changes.
The Competition and Markets Authority (CMA) is pursuing legal action against Emma, a leading mattress retailer, over concerns regarding its online discount strategies. The CMA contends that these tactics may mislead consumers, prompting unnecessary pressure to make quick purchases. The watchdog’s action follows a two-year investigation focusing on Emma’s use of urgency claims such as countdown timers on its website.
Countdown timers are a marketing tool commonly used to create a sense of urgency among consumers. By setting a visible deadline for a discount, they encourage immediate purchases, often influencing consumer behaviour. The CMA’s scrutiny arose from concerns that such tactics, if misleading, could result in consumers spending more than intended, driven by the fear of missing out on supposed short-lived deals.
Additionally, the investigation delved into Emma’s use of ‘reference pricing’. This strategy advertises products at a discount by comparing them to a higher original price, potentially influencing consumer perception of a deal’s value. The CMA expressed concerns that this practice might not always reflect genuine previous prices, thereby potentially deceiving consumers regarding the legitimacy of the discount.
Emma was given ample opportunity to adjust its business tactics following the CMA’s initial investigation. However, according to the authority, the mattress seller failed to make all the required changes to address concerns over its marketing methods. Consequently, the decision was made to seek an enforcement order from the High Court, with the CMA filing its claim on 17 October.
George Lusty, interim executive director of the CMA, reiterated the need for this legal intervention. He highlighted the potential impact of misleading sales tactics on consumer decision-making, stating that these strategies can lead to hurried purchases and overspending. The lack of satisfactory changes from Emma necessitated this progression to court action, underscoring the CMA’s commitment to consumer protection.
The CMA’s legal proceedings against Emma underline a dedicated effort to ensure fair marketing practices and safeguard consumer interests.
