Wowcher will have to change its selling practices and refund customers over £4 million following an investigation by the Competition and Markets Authority (CMA).

The watchdog launched an investigation into the deals website over concerns that its countdown timers and marketing claims were creating a false sense of urgency and influencing consumer purchasing decisions.

The CMA said that these claims gave a misleading impression that the products would shortly become unavailable, which was often not the case.

It was concerned that the countdown timers could have put pressure on shoppers to buying items quickly to avoid missing out on perceived bargains or lead them to spend more than they intended.

The investigation found that the “overwhelming majority of products” on Wowcher’s site continued to be available at a similar price once the timer had ended.

Additionally, the CMA was also concerned about Wowcher’s use of pre-ticked boxes to sign thousands of customers up to its paid-for VIP membership, which it said often resulted in customers being signed up without their full understanding.

Following the investigation, Wowcher must refund customers who were signed up to the VIP membership.

The CMA estimates that this affects over 870,00 customers and expects refunds to be in the region of over £4 million.

As a result of the investigation, Wowcher has also signed formal agreements to improve its selling practices.

The website has agreed to only use clear and accurate countdown timers and will remove its permanent countdown timer at the top of its homepage. It must also ensure that its marketing claims are clear and accurate, reflecting its sales and stock figures.

To ensure Wowcher is complying with the commitments it signed, the firm must regularly report back to the CMA over the coming year.

Sarah Cardell, chief executive at the CMA, said that the changes would make a real difference for people who use Wowcher.

“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,” she added. “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, totaling a hefty £4 million.”

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