CMA Named Wayfair, Appliances Direct and Marks Electrical for Drip Pricing — What It Means for Your Online Store

The CMA has taken enforcement action against Wayfair, Appliances Direct and Marks Electrical for drip pricing — the practice of advertising low prices and then revealing unavoidable fees at checkout. Under the Digital Markets, Competition and Consumers Act (DMCC Act), fines can now reach 10% of global annual turnover. If your online store adds delivery fees, booking charges, or processing costs that aren't shown upfront, you could be next.

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What Is Drip Pricing?

Drip pricing is when a retailer advertises a product at one price but incrementally reveals mandatory extra costs during the checkout process. By the time the customer reaches payment, the price is significantly higher than the headline figure they clicked on.

Common forms of drip pricing in online retail:

• Delivery charges revealed only at checkout, not visible on the product page
• Handling fees added after the customer selects their item
• "Mandatory" insurance presented as optional but pre-ticked at checkout
• Booking or processing fees disclosed only at the final payment screen
• Service charges that appear only after the customer has entered their delivery address

The CMA's position is clear: if a fee is unavoidable — the customer must pay it — it must be included in the advertised price or prominently disclosed before the customer begins the purchasing journey.

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Why the CMA Is Acting Now

The DMCC Act received Royal Assent in May 2024 and gave the CMA significant new direct enforcement powers. Previously, the CMA had to take companies to court. Now it can issue fines directly — and those fines are up to 10% of global annual turnover.

For a retailer with £5m annual revenue, that's a £500,000 fine. For a retailer with £50m annual revenue, that's a £5m fine.

The named companies — Wayfair, Appliances Direct, and Marks Electrical — are not fringe players. They are mainstream UK ecommerce retailers. The CMA's decision to name them publicly is deliberate: it's a signal to the entire sector.

The CMA's Director of Consumer Protection said: "The DMCC Act gives us the tools to tackle unfair pricing practices across online retail at scale. We will use them."

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What the CMA Found in Each Case

Wayfair

Wayfair was found to have advertised products with delivery costs hidden until late in the checkout process. The CMA found that mandatory delivery fees were not shown on product listing pages, meaning customers could not compare the true cost across retailers.

Appliances Direct

Appliances Direct was found to have applied mandatory handling and logistics surcharges that were not visible at the point of price comparison. The headline price shown in search results and on product pages excluded costs that all customers had to pay.

Marks Electrical

Marks Electrical was found to have charges added at checkout that, while disclosed before payment, were not included in any advertised price — meaning customers who had made a buying decision based on the product page price were not seeing the full cost.

In all three cases, the CMA found a violation of the Consumer Protection from Unfair Trading Regulations 2008, reinforced now by the DMCC Act's stronger direct enforcement powers.

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The Legal Standard: What You Must Do

Under current UK consumer law (as enforced via the DMCC Act), any charge that is:

• Mandatory for the customer to pay
• Unavoidable as part of the transaction

...must be included in the headline price or prominently displayed before the purchasing decision is made.

"Before the purchasing decision" is interpreted strictly. It means before the customer adds the item to their basket, not at checkout.

What This Means in Practice

If you sell online and add any fees at checkout that aren't shown on the product page:

1. Delivery charges: Must be shown on the product page (or clearly indicate "delivery from £X" with the range visible before checkout)
2. Handling fees: Must be included in the headline price — there is no exception for "logistics surcharges"
3. Booking fees for services: Must be in the advertised price
4. Recycling levies or extended warranty pre-ticks: If mandatory or pre-selected, must be disclosed upfront

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The Risk Level by Business Type

Business Type	Risk Level	Common Issue
Pure ecommerce (product listings)	High	Delivery fees not shown on product pages
Marketplace sellers	High	Fees vary by product but all must show in listing price
Service booking sites	Medium-High	Booking/admin fees revealed at checkout
Subscription services	Medium	Setup fees or first-cycle charges not in advertised price
Physical retail with online booking	Lower	Generally lower risk if pricing is straightforward

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How the CMA Will Investigate

Under the DMCC Act, the CMA can:

• Issue information requests (you must respond within a set timeframe)
• Conduct dawn raids on digital retailers
• Review advertising material, website screenshots, and conversion funnel flows
• Issue provisional findings with a right of response
• Issue final infringement decisions and fines — all without going to court

The CMA has also indicated it will use algorithmic monitoring to identify drip pricing at scale. It doesn't need a complaint to begin an investigation.

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What to Do Right Now

Audit Your Checkout Flow

Walk through your checkout as if you were a new customer. Document every fee that appears and when it first appears. Compare it to your product listing price.

Ask yourself:

• Does the price on my product page match what the customer pays (excluding optional add-ons they actively choose)?
• Are any fees displayed only after the customer begins checkout?
• Are any items pre-ticked at checkout that add cost?

Fix Your Product Pages

If you identify fees that appear for the first time at checkout:

• Add the delivery charge to the product page headline price, or
• Add a clear, prominent disclosure on the product page: "+ £X delivery applies to all orders"
• If delivery is variable, show the range: "delivery from £2.99" is acceptable if accurate

Check Your Marketing Materials

Any price featured in a Facebook ad, Google Shopping listing, email, or printed promotion must reflect the actual cost including unavoidable fees. A product sold for £49 with a mandatory £6.99 delivery fee should be advertised as "from £55.99" or "£49 + £6.99 delivery."

Not sure if your pricing practices put you at risk? Take our free Compliance Score quiz — 20 questions, instant results: compliancealert.co.uk/compliance-score

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The Bigger Picture: The DMCC Act Is Just Getting Started

The CMA's action against Wayfair, Appliances Direct, and Marks Electrical is the opening salvo. The DMCC Act also enables the CMA to tackle:

• Fake reviews — paying for, suppressing, or fabricating reviews (fines also up to 10% turnover)
• Subscription traps — making it harder to cancel than to sign up
• Reference pricing — "was £199, now £99" claims that aren't based on genuine prior sales
• Urgency nudges — countdown timers, low stock warnings, and other dark patterns that may be misleading

The CMA's 2026 enforcement plan explicitly names all of these. If you operate an online store, you are operating in an environment where the CMA is actively looking for violations.

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How ComplianceAlert Monitors CMA Enforcement

ComplianceAlert tracks CMA enforcement decisions, new DMCC Act guidance, and regulatory updates in real time. When the CMA issues guidance that affects your sector, you receive a plain-English alert with a summary of what's changed and what action (if any) you need to take.

For ecommerce and retail businesses, we monitor:

• CMA enforcement decisions and investigation announcements
• Trading Standards guidance updates
• DMCC Act implementation developments
• Consumer Rights Act enforcement activity
• ICO GDPR guidance relevant to customer data in retail

Start your free 7-day trial — no credit card required: compliancealert.co.uk/retail

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Key Takeaways

• The CMA has named Wayfair, Appliances Direct, and Marks Electrical for drip pricing
• Under the DMCC Act, fines can reach 10% of global annual turnover — no court needed
• Any mandatory fee must be shown before the customer makes a purchasing decision
• Delivery charges, handling fees, and mandatory surcharges must be in the headline price or clearly disclosed on the product page
• The CMA can investigate proactively — you don't need to be reported
• Fake reviews, subscription traps, and reference pricing are also now in scope

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FAQ

Does this affect small online retailers, or just big companies? The DMCC Act applies to all businesses selling to UK consumers online. The CMA has indicated it will prioritise larger cases initially but has the tools and the intention to enforce across the sector.

What if my delivery fees genuinely vary by location? Variable delivery is acceptable — but you must display the range (e.g., "from £2.99") prominently on the product page, not reveal the charge for the first time at checkout.

Are pre-ticked optional extras illegal? Pre-ticked boxes that add cost without the customer actively selecting them are considered a form of drip pricing and are a specific enforcement target for the CMA.

How quickly does the CMA act once an investigation starts? Under the DMCC Act, the CMA has new streamlined investigation timelines. It can issue an initial information request within days of opening an investigation.

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