Yahoo Finance Online shopping 'rip-off tip-off' campaign: what you need to know
One in four UK shoppers have fallen victim to sneaky online sales tactics, with the competition regulator urging consumers to report online shopping scams.
The Competition and Markets Authority (CMA) is launching a new phase of its ‘Online Rip-Off Tip-Off’ campaign, which this year is urging consumers to report online rip-offs via a new digital reporting form.
The campaign aims to crack down on practices that could break the law and urges shoppers to call out online rip-offs.
The campaign seeks to enable consumers to spot and avoid misleading online sales tactics, and to report businesses which engage in misleading tactics. These include pressure selling, hidden charges, subscription traps and fake reviews.
The crackdown comes as the CMA survey found that 67% said cost of living pressures have made them more desperate to find the best deals, while 71% believe they are "saving money" by purchasing deals that are on offer — some of which may not be genuine.
Read more: ‘Online rip-off tip-off’ campaign launched as 7 out of 10 people get scammed
“Now more than ever, every penny counts and the CMA is concerned that some businesses are using underhand tactics designed to part shoppers from their cash,” George Lusty, senior director for consumer protection at the CMA, said.
“This poll is just the tip of the iceberg as we believe the true number of victims of these rip-offs is much higher as they are often extremely difficult to spot.”
The survey also found that one in four (24%) UK consumers said they had fallen victim to sneaky online sales tactics.
Some 23% didn’t realise tactics such as ‘15 mins left of sale’ or ‘buy now’ promotion can sometimes be false or misleading and 68% thought these types of tactics should be banned.
Red lines
The CMA is currently focusing on urgency claims and price reduction claims.
“These claims have a legitimate place when they alert consumers to genuine special offers or provide helpful information about current selling conditions. However, we have become concerned about claims that may mislead or put unfair pressure on consumers in the UK,” the regulator said.
Urgency claims are any scarcity, popularity, ‘act fast’ or time limited claim that is presented to consumers online. Price reduction claim means any discount or special offer price that refers to a higher comparison price.
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The competition watchdog is warning online businesses that they cannot use urgency claims or price reduction claims that are misleading or put unfair pressure on consumers.
Angellica Bell, consumer champion and co-presenter of The Martin Lewis Money Show, who is supporting the campaign, said: “We know that the rising cost of living is putting a strain on shoppers across the UK. Some online businesses are using sneaky sales tactics to make us part with our money when household budgets are already stretched.
“We all feel the pressure of securing bargains, making us more susceptible to being ripped off. It’s frustrating when this happens and it’s time we call out these online retailers and report them to the CMA.”
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