Wowcher has made an agreement with the Competition and Markets Authority (CMA) to refund more than £4m to customers and alter its high-pressure sales tactics. The CMA launched an investigation in 2020 to determine whether Wowcher’s promotion phrases such as ‘Running out!’ and ‘In high demand!’ created a false sense of urgency and influenced people’s purchasing decisions. The CMA was also concerned about the use of countdown timers on Wowcher’s site and its sign up process for the VIP membership service.
Wowcher has agreed to change its approach and ensure that it only displays precise and accurate claims on its website. The platform will no longer feature its permanent countdown timer at the top of its homepage, which states that deals will refresh at midnight. Wowcher has also pledged to remove the pre-ticked boxes used to sign customers up for VIP membership without sufficient understanding.
More than 870,000 customers will receive credit refunds, with the option to exchange for cash to ensure their full comprehension. These agreements have allowed Wowcher to avoid being taken to court by the CMA. The refunds for those affected are expected to be over £4m, based on information provided by Wowcher.
Sarah Cardell, CMA CEO, said pressure selling tactics may create a false impression pushing shoppers into snap decisions or higher spending. The action taken by the CMA will make a difference to the millions of people who use Wowcher. Wowcher must provide regular reports to the CMA over the next year to ensure compliance with the commitments it has signed. Customers are encouraged to check their emails and texts from Wowcher to watch out for the credit alert which they can exchange to cash if they prefer.
