When “Tick-Tocks” Bring Trouble: CMA Calls Time on Misleading Sales Tactics

A recent wave of enforcement action by the UK’s Competition and Markets Authority (CMA) should have digital marketers in the home and garden sector—and beyond—sitting up and paying close attention. The spotlight is on Simba Sleep and the prominent deals platform Wowcher, both of which have been called out for alleged manipulative online sales tactics.

The CMA launched an investigation into Simba Sleep following reports that the company misled consumers with false price reductions and used deceptive countdown timers to pressurise quick purchases. According to the initial investigation, Simba Sleep made claims about price drops that didn’t hold water and utilised urgency indicators like countdown timers that contributed to an intense—and unjust—sense of urgency among shoppers. Fast forward to today, and Simba Sleep has complied with the CMA’s terms, including a commitment to accurately represent discounts and ensure clarity in any countdown mechanisms used on their website (CMA press release, August 2024).

Meanwhile, Wowcher also found itself in hot water for similar practices. Investigations revealed that Wowcher’s countdown timers and promotional phrases exaggerated the scarcity of deals, thereby nudging customers toward hasty purchase decisions. Alarmingly, over 870,000 people had fallen into Wowcher’s ‘VIP membership’ trap through pre-ticked boxes that signed them up without full comprehension. Wowcher has since committed to clear and honest marketing practices and is due to refund more than £4 million to affected customers (Taylor Wessing, Sept 2024).

As marketing managers, the takeaways here go beyond the realm of basic compliance. These investigations highlight a critical issue: consumer trust. Shoppers are savvier than ever, and any whiff of deception can not only result in legal action but also erode hard-won brand loyalty. Sarah Cardell, Chief Executive of the CMA, hit the nail on the head, emphasizing, “Discounts are a great way for firms to attract customers, but they must represent a real saving” (Big Furniture Group).

As living costs rise, genuine deals become more meaningful. Misleading tactics might yield short-term sales, but the ethical repercussions are long-lasting. In a digital economy where consumer protection laws, such as the Consumer Protection from Unfair Trading Regulations 2008 and the upcoming Digital Markets, Competition and Consumers Act 2024, are tightening, the margin for error is slim.

For home and garden marketers, the lesson is clear: align promotional strategies with transparency and honesty. Ensure that the discounts offered are genuine and avoid any tactics that might even hint at artificial urgency. It’s not just about staying within the legal bounds; it’s about fostering long-term trust and loyalty in an increasingly critical consumer market.

Sources
– “CMA investigates Simba Sleep’s online sales practices,” Big Furniture Group
– “CMA secures changes to Simba Sleep’s online sales practices,” CMA
– “CMA secures undertakings from Wowcher and Simba Sleep“, Taylor Wessing