Misleading business practices: the example of Emma

On October 25, 2024, the Competition and Markets Authority (CMA) initiated legal proceedings against Emma, a mattress company, for failing to address all of the CMA’s concerns regarding potentially misleading practices. The CMA highlighted that the firm employed various online sales tactics, such as discounts, urgency claims, countdown timers, and prompts indicating high demand. These strategies were deemed capable of pressuring consumers into making hasty purchasing decisions, potentially leading them to spend more than they otherwise would, for fear of missing out.

What are misleading practices?

 The CMA categorized these strategies as misleading practices. According to its guidelines, a practice is considered misleading if it: 

- Provides false or inaccurate information, 

- Deceives or is likely to deceive consumers, or 

- Induces consumers to make decisions they would not have made otherwise. 

Misleading practices can manifest in various forms, including: 

- False or inaccurate information about key product characteristics (e.g., availability, as alleged in Emma’s case), 

- Intentional confusion between the brand’s products and those of competitors, 

- Deliberate concealment of information that might influence a consumer’s purchasing decision, or even

- Aggressive commercial practices, such as imposing unreasonable non-contractual barriers when consumers attempt to terminate a contract or switch to another product or provider. 

How can you protect yourself from these practices? 

 The best way to protect yourself is first and foremost to know your rights as a consumer regarding companies.

Since the Consumer Rights Act came into force in 2015, new regulations have been introduced to help consumers better understand their rights. In the event of a dispute between a consumer and a business, the new laws encourage alternative dispute resolution without going to court.

Given that UK consumers spend approximately £130 billion per month, safeguarding these rights is essential to prevent businesses from undermining them. 

 For individuals seeking assistance, Bangor University Legal Advice Clinic (BULAC) offers free legal advice on issues related to Consumer law. To make an appointment, please call 01248 388411 or email us at bulac@bangor.ac.uk.