The UK’s Competition & Markets Authority (CMA) is taking legal action against Emma, a leading mattress retailer.
- The CMA’s investigation began two years ago focusing on Emma’s use of online urgency claims.
- Emma was asked to adjust its ‘reference pricing’ used to show discounts from previous prices.
- The CMA believes these tactics may mislead shoppers into making hasty and possibly regrettable purchases.
- Emma has not made the necessary changes, prompting the CMA to seek a court order.
The Competition and Markets Authority (CMA) has announced that it is taking legal steps against the mattress retailer Emma. The legal action follows a two-year investigation into the retailer’s online sales tactics. The focal point of this investigation has been the use of online urgency claims designed to create a sense of hurry among shoppers. These urgency claims often involve the utilisation of countdown timers, a common marketing tool that encourages consumers to act quickly, ostensibly to secure a fleeting deal.
In addition to urgency claims, Emma was instructed to alter its ‘reference pricing’. Reference pricing shows potential buyers how much a product was previously sold for, suggesting a discount on the current price. However, the CMA has expressed concerns that these tactics, if used misleadingly, can prompt consumers to make rapid buying decisions they might later regret.
George Lusty, the interim executive director of the CMA, stated: “We are concerned that when sales tactics such as discounts and countdown clocks are used in a misleading way, they can pressure shoppers into making quick purchases and spending more than they otherwise would, for fear of missing out.” This statement underscores the CMA’s position that the presentation of pricing and promotional strategies can have a significant impact on consumer behaviour.
The CMA’s decision to proceed with court action was made after Emma failed to comply fully with the requested changes to its business model. The watchdog has now applied to the High Court, seeking an enforcement order to mandate Emma to modify its online selling practices. According to Lusty, “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’s pursuit of legal action highlights the importance of truthful advertising and fair marketing practices in protecting consumer interests.
