WOWCHER is refunding £4million to around 870,000 customers over “misleading” sales practices.
The Competition and Markets Authority (CMA) found that the e-commerce website used pressure tactics such as countdown clocks to rush shoppers into spending cash.
Wowcher promotes deals on everything from spa days and hotel stays to home gadgets.
But the CMA found that the discount website’s marketing claims created the impression deals might increase in price or disappear, even though this was “often not the case”.
It criticised the site’s use of countdown tickers and warnings of deals “running out!” or being “in high demand!” which could rush shoppers into buying something.
The regulator also raised concerns over hidden charges, such as a pre-ticked box when customers buy an item, which automatically signed them up to a “VIP” membership scheme.
Customers had to untick the box before checkout or they would be charged £4.99 for a year’s subscription.
It said that this risked customers “being signed up without their full understanding”.
Wowcher will now refund over £4million to 870,000 customers were signed up to this membership via the pre-ticked box.
Sarah Cardell, chief executive at the CMA, said: “Our action will make a real difference for the millions of people who use Wowcher. Consumers who shop on the site can now have more confidence in the claims they see before parting with their hard-earned cash – and hundreds of thousands will soon see refunds, totalling a hefty £4 million.
“We encourage all Wowcher customers to check their emails and texts from the company to keep an eye out for a credit alert – which they can exchange to cash should they wish.”
Last year, the CMA warned the website that it could face legal action if it doesn’t change its sales practices.
As a result, Wowcher has signed formal commitments – known as undertakings – including only using clear and accurate countdown timers and making sure all marketing claims are clear and accurate.
To make sure the deals’ site is complying with the commitments it signed, the firm must regularly report back to the CMA over the coming year.
The Wocher findings came as part of a wider probe by the CMA into pressure tactics used by online retailers.
