WOWCHER is refunding £4million to around 870,000 customers over “misleading” sales practices.
The Competition and Markets Authority (CMA) said it was concerned that the e-commerce website used pressure tactics such as countdown clocks to rush shoppers into spending cash.
AlamyWowchase will refund almost 900,000 customers over “misleading” sales practices[/caption]
Wowcher promotes deals on everything from spa days and hotel stays to home gadgets.
But the CMA said 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.
A Wowcher spokesperson 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.”
The Wowcher findings came as part of a wider probe by the CMA into pressure tactics used by online retailers.
You can report misleading sales tactics to the CMA at ripoff-tipoff. campaign.gov.uk.
Give the name of the business and a brief description of what happened.
How to get a Wowcher refund
If you ever signed up to Wowcher’s “VIP” membership scheme, it’s worth checking your emails and texts to see if you get an email.
The email will tell you that you’re entitled to credit to use on the website.
But if you don’t want to spend the money with Wowcher, you will be able to get it converted to cash.
The cost of the refund will be £4.99 per person – the price of a VIP subscription.
You’ll just have to respond to the alert with your preferred option.
The Sun has asked the CMA if there is a set time frame for the refunds to be issued and we will update this article one we hear back.
How to bag a bargain
SUN Savers Editor Lana Clements explains how to find a cut-price item and bag a bargain…
Sign up to loyalty schemes of the brands that you regularly shop with.
Big names regularly offer discounts or special lower prices for members, among other perks.
Sales are when you can pick up a real steal.
Retailers usually have periodic promotions that tie into payday at the end of the month or Bank Holiday weekends, so keep a lookout and shop when these deals are on.
Sign up to mailing lists and you’ll also be first to know of special offers. It can be worth following retailers on social media too.
When buying online, always do a search for money off codes or vouchers that you can use vouchercodes.co.uk and myvouchercodes.co.uk are just two sites that round up promotions by retailer.
Scanner apps are useful to have on your phone. Trolley.co.uk app has a scanner that you can use to compare prices on branded items when out shopping.
Bargain hunters can also use B&M’s scanner in the app to find discounts in-store before staff have marked them out.
And always check if you can get cashback before paying which in effect means you’ll get some of your money back or a discount on the item.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
