GovWire

Wowcher Group: consumer protection case

Competition Markets Authority

July 19
06:02 2024

This investigation forms part of the CMAs consumer enforcement work, tackling potentially harmful online selling practices

Case timetable

Date Action
15 July 2024 Undertakings accepted from Wowcher
16 November 2023 Consultation letter issued
31 March 2023 Case launch

Undertakings accepted from Wowcher

15 July 2024: Wowcher Limited, LivingSocial Limited and Wowcher West Ltd (together, Wowcher) have signed undertakings to change their online selling practices.

The undertakings commit Wowcher to, amongst other things:

  • only using clear and accurate countdown timers: timers must not mislead consumers or give a false impression that they have to act quickly to avoid missing out on a deal
  • making sure all scarcity and popularity marketing claims are clear and accurate
  • refunding VIP membership fees to customers who were signed up to VIP membership via a pre-ticked box: Wowcher will refund customers in credit, with the option to convert to cash, and stop the use of pre-ticked boxes for VIP sign-ups

Wowcher must also regularly report back to the CMA over the coming year.

Consultation letter

16 November 2023: The CMA has written to Wowcher Limited, LivingSocial Limited and other firms in the same corporate group (Wowcher) in relation to possible breaches of consumer protection law. The letter details the CMAs specific concerns about Wowchers online sales practices, including whether its countdown timers and other urgency claims mislead consumers. The CMA has asked Wowcher to take steps to address its concerns. Wowcher now has an opportunity to respond to the CMAs concerns and avoid possible court action by signing undertakings setting out how it will address those concerns.

Case opening

31 March 2023: The Competition and Markets Authority (CMA) has opened an investigation into Wowcher Limited, LivingSocial Limited and other firms in the same corporate group (the Wowcher Group)s compliance with consumer protection law.

As part of this, the CMA is investigating the Wowcher Groups use of countdown timers and other urgency claims.

The CMA will now engage with the Wowcher Group and gather evidence to consider whether the CMA thinks any of the companies in the group have broken consumer protection law. The CMA is at the initial stage of its investigation. Accordingly, it should not be assumed that any company under investigation has broken consumer protection law.

How we use your information

In the course of an investigation, we may obtain personal information about individuals. Personal information we may collect includes personal data such as names, business titles and personal or business contact email addresses. If we have received personal information then this will be handled in accordance with our obligations under the Data Protection Act 2018 and with other legislation designed to protect individuals privacy.

Further details of the CMAs approach and your rights and the CMAs obligations in respect of this data are set out in our Personal information charter

Contact

OCAExternal@cma.gov.uk

  • Director, Fred Houwen
  • Senior Responsible Officer, Hayley Fletcher

Updates to this page

Published 31 March 2023
Last updated 19 July 2024 +show all updates
  1. Undertakings published

  2. Consultation letter published

  3. First published.

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