CMA fines Wayfair £4.8m over misleading discounts

The CMA has fined Wayfair over misleading discounts in the UK, alongside Appliances Direct and Gold’s Gym, in penalties that total £6 million. The Competition and Markets Authority said Wayfair must pay £4.8 million for false time-limited offers, while customers of two of the firms will share about £440,000 in refunds. Here is what the findings mean if you shop online, and what to check before you buy.

What Wayfair did wrong with its time-limited offers

According to the CMA, products on Wayfair’s website were advertised through ‘Daily Deals’ and 24-hour ‘Flash Deals’. These came with messages such as ‘Here Today, Gone Tomorrow’ and countdown timers, which implied shoppers had to act quickly to get the best deal. The regulator found that many products stayed available at the same price or lower after the stated deadline, so the time-limited offer was false.

The CMA said that by presenting these as one-day offers, people could have felt pressured into a quick purchase so as not to lose out. A Wayfair spokeswoman said: “Although we believe the fine is excessive and disproportionate, we take the CMA’s findings seriously and we chose to settle so we can continue to focus on serving our customers.”

Appliances Direct was caught by a similar problem. It used pop-up countdown banners on some product pages claiming that discounts of £10 to £25 were available for a limited time, but the CMA found the same discount codes appeared repeatedly over many days. It was also found to have automatically opted customers into paid-for extras, and Gold’s Gym was fined for not showing the full membership price clearly.

Who pays, and who gets money back

The fines are paid by the businesses, not shoppers. Retail Gazette reported that all three firms admitted breaching consumer law and settled early, which earned each a 40% reduction in its fine. The CMA said early settlement lets it resolve cases faster and return money to consumers more quickly.

The CMA said Appliances Direct and Gold’s Gym will contact affected customers about their refund, and customers do not need to take any action. The penalties were imposed under powers introduced through the Digital Markets, Competition and Consumers Act 2024, which Retail Gazette reported allow fines of up to 10% of global turnover.

A worked example: what the refunds look like in practice

Take a shopper who bought a washing machine from Appliances Direct and was opted into an installation or recycling service without ticking a box. The CMA said the average refund for those affected is £25, so that shopper would typically expect about £25 back, paid without a claim. On the CMA’s totals of about £432,000 at £25 each, our arithmetic suggests roughly 17,000 customers were affected, though the CMA has not given that figure.

The Gold’s Gym numbers show how refunds can differ. The CMA ordered £9,220 to be repaid to 726 customers, with each receiving either £50 or £10 depending on membership type. Working backwards, that split implies 49 customers receiving £50 and 677 receiving £10. This is our calculation from the published totals, not a figure the CMA has confirmed.

The scale of the fines is also worth setting against company size. BusinessCloud reported that Wayfair generated revenue of $12.46bn in 2025 and Appliances Direct $236m. A 10% ceiling on turnover of that size would be far above £4.8m, which shows the penalties sit well below the maximum the law allows, although each firm also benefited from the 40% settlement reduction.

Misleading pricing claims online: what to do now

Start with the countdown. If a timer says a deal ends tonight, note the price and take a screenshot. Check the same product the next day. If the price is unchanged, or lower, the urgency may not be genuine, and you have evidence if you want to raise it with the retailer.

Next, read the basket before you pay. Under consumer law, as the CMA described it, businesses must get your express agreement before charging for optional extras, and pre-ticked boxes or any automatic opt-in are not allowed. If installation, recycling or insurance appears in your total and you did not choose it, remove it or ask the seller to do so in writing.

For memberships and subscriptions, look for the total price including any mandatory fees, such as a joining fee. The CMA said businesses must show this clearly and from the outset. If the headline monthly figure leaves out a charge that appears later, keep a copy of the page and the final bill.

Finally, if you bought from Appliances Direct or Gold’s Gym and think you were affected, wait for the firm to contact you. The CMA said no action is needed to receive a refund.

Your questions answered

What did Wayfair do wrong with discounts?

The CMA found that Wayfair’s ‘Daily Deals’ and 24-hour ‘Flash Deals’, backed by countdown timers and ‘Here Today, Gone Tomorrow’ messaging, implied customers had to act fast. Many products were still on sale at the same price or lower after the deadline, which made the time-limited offer false.

How much did the CMA fine Wayfair and others?

Wayfair was fined £4.8 million, Appliances Direct £1.2 million and Gold’s Gym £45,000, about £6 million in total. Each received a 40% reduction for admitting the breach and settling early. Appliances Direct must also refund about £432,000, and Gold’s Gym £9,220.

What should UK shoppers know about misleading sales tactics?

The CMA’s message is that prices and offers should be genuine and accurate, and that you should decide for yourself whether to buy optional extras. Hayley Fletcher, the CMA’s senior director for consumer protection, said: “The time is up for this kind of behaviour.” Over the past 18 months, the CMA said it has imposed fines of more than £12 million and secured nearly £2.4 million in refunds under its new powers. It has also launched investigations across retail, ticketing, online reviews and travel, according to Retail Gazette.