Shoppers urged to call out online rip-offs as CMA unveils ‘red lines’
The CMA is launching a new phase of its successful ‘Online Rip-Off Tip-Off’ campaign, which this year is urging consumers to report online rip-offs via a new digital reporting form.
Image credit: CMA
- Consumer Champion Angellica Bell fronts campaign to call out online rip-offs
- CMA publishes letter to UK businesses detailing its ‘red lines’ when using price reduction and urgency claims
- New poll reveals two thirds (67%) of UK consumers say the impact of cost of living makes them more desperate to find a deal
The campaign, fronted by consumer champion and Martin Lewis Money Show co-presenter Angellica Bell, aims to crack down on practices that could break the law and urges shoppers to call out online rip-offs.
The campaign seeks to enable consumers to spot and avoid misleading online sales tactics, and to report businesses which engage in misleading tactics. These include: pressure selling, hidden charges, subscription traps and fake reviews. These tactics are designed to mislead and push people to part with their cash online.
Tackling the problem from both angles, the Competition and Markets Authority (CMA) is also publishing today a letter to UK businesses detailing its ‘online red lines’ on misleading price reduction and urgency claims – which are a type of pressure selling. It provides practical illustrations of where common online tactics may be misleading consumers or applying unfair pressure. The advice is for all businesses that sell or promote products online to UK shoppers, so they can stop sales practices that could break the law.
The announcement comes as a survey of 3,700 UK adults* shows that 67% say the cost-of-living pressures have made them more desperate to find the best deals, while 71% believe they are ‘saving money’ by purchasing deals that are on offer – some of which may not be genuine.
The poll also found:
- 1 in 4 (24%) of UK consumers said they had fallen victim to sneaky online sales tactics
- 23% didn’t realise tactics such as ‘15 mins left of sale’ or ‘buy now’ can sometimes be false or misleading
- 68% thought these types of misleading tactics should be banned
Angellica Bell, consumer champion and co-presenter of The Martin Lewis Money Show, who is supporting the campaign, said:
We know that the rising cost-of-living is putting a strain on shoppers across the UK. Some online businesses are using sneaky sales tactics to make us part with our money when household budgets are already stretched. We all feel the pressure of securing bargains, making us more susceptible to being ripped off. It’s frustrating when this happens and it’s time we call out these online retailers and report them to the CMA.
George Lusty, Senior Director for Consumer Protection at the Competition and Markets Authority, commented:
Now more than ever, every penny counts and the CMA is concerned that some businesses are using underhand tactics designed to part shoppers from their cash. This poll is just the tip of the iceberg as we believe the true number of victims of these rip-offs is much higher as they are often extremely difficult to spot.
That’s why businesses using urgency and price reduction claims need to consult the CMA’s new advice. It outlines what businesses need to do when designing their online shopping experiences to be sure they comply with the law.
Notes to Editors
-
A description of the online practices referenced in the online red lines advice are:
- Urgency claims: Any scarcity, popularity, ‘act fast’ or time limited claim (including a countdown clock) that is presented to consumers online. For example, ‘Only 7 left’, ‘14 sold in the last 24 hours’, ‘Hurry! Today only’, ‘Offer ends in 02:50:56’
- Price reduction claims: Any discount or special offer price that refers to a higher comparison price. For example, ‘£32 £16’, or ‘Was 45. Now £20’.
-
A description of the misleading online practices referenced in the Online Rip-Off Tip-Off campaign are:
- Pressure selling: a sales tactic used to give a misleading impression of the limited availability, popularity or usual selling price of a product or service
- Hidden charges: unexpected compulsory fees, charges or taxes being added when someone tries to make an online purchase
- Subscription traps: misleading a customer into signing up to, and paying for, an unwanted subscription that can be difficult to cancel
- Fake or misleading reviews: Reviews which do not reflect an actual customer’s genuine opinion or experience of a product or service.
-
Link to CMA’s new digital reporting form.
-
Link to CMA’s ‘online redline’ compliance advice to businesses: https://www.gov.uk/government/publications/using-urgency-and-price-reduction-claims-online
About the OnePoll * research:
- All figures, unless otherwise stated, are from OnePoll
- This survey was conducted using an online interview (administered between 7th-15th March 2023) to members of the OnePoll UK panel
- The total sample size was 3,700 adults. The figures have been weighted to reflect the profile of the UK adult population
- OnePoll make every effort to provide representative information.