Taking the pressure off: the CMA has released its position on the use of countdown timers, discount claims and other pressure-selling tactics

False time limited claims

• A trader states that a promotion will end at a particular time, but the promotion continues.
• For example, using countdown timers or claims like “ENDS TONIGHT!”.

Deceptive time limited claims

• A trader states that a promotion will end at a particular time, but a similar or comparable offer is available after the initial promotion ends.

False checkout timers

• A trader states that there is limited time to complete a transaction using a countdown timer on a checkout page.
• However, the countdown timer resets when it reaches zero.

False stock claims

• A trader states that its stock levels are low, however the trader:
  • is not short on stock;
  • will be receiving stock shortly; and/or
  • can perform its contracts without delay.

False urgency claims

• A trader uses claims which reflect consumer interest in a product, encouraging them to act quickly.
• For example, “HURRY! 10 people are viewing this now.”
• However, the trader has lots of stock and/or can perform its contracts without delay.

False timeframes

• A trader provides live data reflecting consumer interest in a product.
• For example, “20 people are viewing this now.”
• However, the data does not reflect current conditions, but in fact how many viewed in the previous hour.

Purchase activity claims

• A trader uses claims which describe consumer purchase activity.
• For example, “200 people bought this in the last hour.”
• However, whilst 200 consumers have purchased the product, these purchases related to different models of the same product.

Deceptive sales rates

• A trader uses sales rates claims such as “HIGH DEMAND! 100 people bought this in 24 hours.”
• However, whilst this information is true, the trader is referring to a historic 24-hour period (some months ago), and not the previous 24 hours.

Price Reduction claims

For example: “£100 £50” / “Was £100, Now £50” (£100 represents the reference price, and £50 the discount price)

The following price reduction claim scenarios are unlikely to comply with consumer laws according to the CMA:

• Time sold for. The product was sold at the reference price for a short time, as compared with the time it was sold at the discount price. The reference price no longer represents the product’s usual selling price.
• Stock sold. The trader did not sell the product in significant numbers at the reference price. The reference price does not reflect the product’s usual selling price.
• Flip-flopping prices. The trader has repeatedly and continuously switched the product price between the reference and the discount price. The reference price no longer reflects the product’s usual selling price, given the discount price is repeatedly offered.
• Lower prices charged since reference price. Whilst the trader did originally offer the product at the reference price, there have been various intervening prices.
• Short-lived price hikes. Whilst the trader did offer the product at the reference price, this was a temporary price increase, and the usual selling price is lower.
• Old reference prices. Whilst the trader did offer the product at the reference price, this was a long time ago. This means the reference price no longer represents a meaningful ‘was’ price.
• Omitting/hiding key information. A price reduction is available (such as “50% off everything!”), however there are conditions that the consumer must fulfil in order to benefit, which were not clearly stated in the headline claim (for example, a consumer must spend over £200 to redeem the discount).