Wowcher to refund £4million to 870,000 customers after ruling over ’misleading’ website
The refunds will be issued to thousands of Wowcher ’VIP members’ after it was ruled the use of pre-ticked boxes meant customers could have been signed up without their full understanding
Wowcher is to refund 870,000 customers a share of over £4million following the outcome of an investigation by the competitions watchdog.
The refunds will be issued to thousands of Wowcher “VIP members” after the Competitions and Markets Authority (CMA) found the use of a pre-ticked box on the website meant customers could have been signed up without their full understanding. Wowcher will now provide a credit refund, with the option to exchange to cash, to over 870,000 customers.
It will also stop using pre-ticked boxes for VIP sign-ups, so customers can be fully aware of what they’re agreeing to. The CMA expects refunds for those affected will total over £4million and will be automatically credited to Wowcher accounts by August 14, 2024.
It comes after an investigation was launched into Wowcher last year by the CMA over fears its online practices could potentially mislead or unfairly pressure consumers into making quick purchases. Wowcher will now change the way it promotes products and services to customers as a result of the findings.
Wowcher will remove its permanent countdown timer at the top of its homepage which states "deals refresh in" followed by a timer, after the CMA ruled customers may be led to believe that deals may change or end. Wowcher will instead only use "clear and accurate" countdown timers.
The CMA has also ruled that any claims about how many deals are left - for example, if an item is listed as "almost gone" - must accurately reflect stock levels make sure all marketing claims are clear and accurate. Any claims about the popularity of a deal – so if Wowcher is saying something is "in high demand" - must represent sale figures and how popular the item is compared to other deals on its website.
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.”
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. ”
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