The Competition and Markets Authority (CMA) has announced a significant investigation into online appliance retailers Appliances Direct and Marks Electrical, amid concerns that the companies may have breached consumer protection laws.
This action is being carried out under the Digital Markets, Competition and Consumers Act 2024, which introduced stricter rules aimed at tackling unfair practices such as fake reviews, drip pricing, and misleading time-limited offers. The legislation gives the CMA new powers to investigate and enforce consumer law directly, without needing to go through the courts.
As part of its first wave of investigations using these powers, the CMA is looking into eight businesses in total, including Appliances Direct and Marks Electrical, which it says it has “reason to suspect” may have violated consumer regulations. The specific focus for the two online retailers is whether time-limited sales ended as advertised and whether customers were automatically enrolled in additional services without consent.
At this stage, the CMA has made no determination of wrongdoing, stating that it will now engage with the retailers and gather evidence to decide whether consumer law has been infringed. If a breach is confirmed, the CMA can require companies to compensate affected customers and impose fines of up to 10% of global turnover.
Sarah Cardell, CMA Chief Executive, commented on the investigations:
"At a time when household budgets are under constant pressure and everyone is looking for the best deal, it’s vital that people can shop online with confidence—knowing the price they see is the price they’ll pay, and that any sales are genuine."
Cardell emphasized that consumer protection extends beyond appliances, noting that misleading pricing or pressure-selling practices can affect purchases ranging from concert tickets to gym memberships, furniture, and driving lessons.
She stated: "We are committed to protecting consumers from misleading prices and illegal pressure selling. Today marks an important milestone as we take action across the economy to ensure businesses do the right thing by their customers."
The CMA has also highlighted its dual approach under the new regime: supporting businesses to comply with the lawwhile taking swift action where potentially serious breaches are suspected.
Cardell concluded: "This is just the start of our work. Any businesses who break consumer law should be in no doubt—we will stamp out illegal conduct and protect the interests of consumers and fair-dealing businesses."
The authority plans to provide an update on the investigations by March 2026, offering clarity on whether any infringements have occurred and detailing potential next steps.
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