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Nearly one million Wowcher customers have received refunds after the competition watchdog took action over the way the online retailer promotes its products.
Totalling around £4 million, the refunds come after the Competition and Markets Authority (CMA) launched an investigation over concerns around Wowcher’s marketing methods last year.
The company has now agreed to change its sales practices, which the CMA said it was concerned create a “false sense of urgency” which pressures customers into making purchases.
The watchdog singled out the use of countdown timers and marketing claims like ‘Running out!’ and ‘In high demand!’. They share concerns that these methods could influence people’s purchasing decisions.
This is despite the “overwhelming majority” of prices remaining similar on the site once the ‘countdown’ had ended, the CMA pointed out.
Also brought into concern was Wowcher’s use of pre-ticked boxes to sign “thousands” of customers up to its paid-for ‘VIP membership,’ risking that people may have signed up without fully understanding.
In November, the company was warned it could face court action if it didn’t change its customer sales practices.
Sarah Cardell, Chief Executive at the CMA, said: ”Pressure selling tactics – such as countdown timers and urgency claims that may create a false impression people must ‘Buy now!’ or miss out – can push shoppers into making snap decisions or spending more than they planned.”
“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.”
The CMA’s investigation into Wowcher came as part of its programme to tackle potentially harmful online selling practice. The watchdog is also currently investigating bed companies Emma Sleep and Simba Sleep as part of the same programme.
A spokesperson for Wowcher said:
“We have voluntarily reached an agreement with the CMA following engagement around our marketing practices. We are pleased that our marketing claims were proven to be factually accurate and supported by real-time data, but are happy to take on the CMA’s feedback to further improve the clarity of our promotions and to enhance our customers’ experience.”
“Our marketing claims aim to support our customers when they are browsing our website to help them find the best, exclusive offers from merchants across the UK, and we look forward to continuing to deliver excellent value and choice for our customers.”
“Wowcher has agreed to offer refunds to certain customers who signed up to the VIP loyalty programme, and will credit these customers with £4.99 into their Wowcher wallet over the coming weeks.”
