According to Financial Times News, the UK Competition and Markets Authority has launched a sweeping crackdown using its new powers under last year’s Digital Markets, Competition and Consumers Act. The regulator has opened investigations into eight specific companies including ticketing websites StubHub and Viagogo, driving schools AA and BSM, Gold’s Gym, and homeware retailers Wayfair, Appliances Direct and Marks Electrical. The CMA has written to 100 businesses across 14 sectors about concerns regarding additional fees and sales tactics following a review since April. These practices include drip-pricing where extra fees get added to initially low prices and pressure selling techniques. The timing coincides with UK ministers planning to announce a ban on ticket resale above face value, which contributed to StubHub shares falling almost 14% on Monday.
The business model behind drip pricing
Here’s the thing about drip pricing – it’s basically a psychological game. Companies show you an attractive base price to get you emotionally invested in the purchase. Then they slowly add fees throughout the checkout process when you’re already committed. It’s particularly effective in competitive markets where everyone’s comparing initial prices. And let’s be honest, who hasn’t gotten to the final checkout page only to discover the total is 20-30% higher than advertised?
But this isn’t just about annoying customers. For many of these businesses, those hidden fees represent significant revenue. The CMA’s threat of fines up to 10% of global turnover shows how serious this is. We’re talking about business models that might actually depend on these practices. When your entire pricing strategy could collapse if you have to be transparent, that’s a problem.
Why now and who benefits
So why is this happening right now? The timing is no accident. With household budgets stretched thin, regulators are under pressure to show they’re protecting consumers. The new Digital Markets Act gives them real teeth – they can order compensation payments to customers plus those massive fines. Sarah Cardell’s statement about people “hunting for the best deal possible” perfectly captures the political moment.
The real beneficiaries here are consumers who just want transparent pricing. But honestly, this could also help honest competitors who’ve been losing business to companies using deceptive tactics. When everyone has to play by the same rules, the market actually works better. It’s about creating a level playing field where companies compete on quality and service rather than who can hide the most fees.
Broader implications
Look, this crackdown isn’t happening in isolation. We’re seeing similar moves against dark patterns and deceptive design across Europe and the US. The digital marketplace is maturing, and regulators are finally catching up with the tricks that have become standard practice.
What’s interesting is how this affects different sectors. Ticket reselling has been a regulatory target for years, but now we’re seeing driving schools and gyms caught in the net too. Basically, any industry where customers comparison shop online could be affected. The CMA’s warning to 100 businesses across 14 sectors shows this is just the beginning.
The question is whether this will actually change behavior or just push companies to find new loopholes. With potential fines this significant, I’m betting we’ll see some rapid compliance. But in the constantly evolving world of online commerce, regulators will need to stay vigilant. The cat-and-mouse game continues.
