9
December
2024

What can retail businesses learn from the Emma Group court proceedings?

“One of the key pieces of legislation that is used for this is The Consumer Protection from Unfair Trading Regulations 2008. These regulations help to protect consumers from potentially misleading advertising. "

John Hartley | Partner and Head of Business Crime and Regulation

In light of a leading UK mattress brand’s legal action following potentially misleading sales tactics, John Hartley, Head of Business Crime and Regulation, highlights the pitfalls the brand fell into – as well as what retailers can learn from their mistakes.  

Emma Group, a well-known UK mattress brand, is currently facing legal action initiated by the Competition & Markets Authority (CMA) concerning its online advertising practices. This action comes as part of the CMA’s ongoing commitment to protect consumers from potentially misleading sales tactics and price reductions that may place undue pressure on online shoppers. The court case aims to address alleged breaches related to how urgent claims and discounts are presented to customers, with Emma Group now under scrutiny for the transparency of its marketing strategies. 

John gives his take on the significance of the CMA’s actions against Emma Group, highlighting the broader implications for online consumer protection and business accountability:  

“The Competition & Markets Authority (CMA) is the Government agency that takes responsibility for overseeing both competition and consumer protection.  

“One of the key pieces of legislation that is used for this is The Consumer Protection from Unfair Trading Regulations 2008. These regulations help to protect consumers from potentially misleading advertising – one area in particular is the focus on how ‘choices’ are presented to online customers in respect of urgency and price reductions. This is also known as “Online Choice Architecture”. 

“The CMA has issued guidance and open letters to businesses to ensure that urgency claims and price reductions are not misleading and do not place unfair pressure on the consumer.  

“Interestingly, the CMA currently has two live investigations into the practices of two separate mattress companies over potentially misleading practices in online discount advertising.  

“The CMA has filed a court action against the Emma Group, requiring it to revise its online selling tactics, while Simba Sleep is also under investigation for similar concerns.  

“Both matters relate to potentially misleading claims regarding price reductions, availability and the use of countdown clocks.  

“The scrutiny placed on these situations looks at the pressure that may be applied to the consumer at the time of viewing the product.  

“Statements which pop up to indicate that the product has been sold many times in the last few minutes together with ‘last few remaining’ comments will often be considered as unfair and likely to affect the decisions made by the consumer.  

John also highlights that, whilst the current proceedings deal with a specific law enforcement, there could be more instore for company officers at Emma Group – or businesses who operate similar sales tactics.   

“Whilst the court proceedings against Emma Group seem to be for an Enforcement Order to remedy the highlighted breaches, there are other tools available to the CMA which include bringing a criminal prosecution for certain regulatory breaches.  

“Company officers should also be aware that if it is demonstrated that a breach was committed with their consent, connivance or neglect, then they may be prosecuted in a personal capacity as well as the corporate. The punishment under the Regulations may be an unlimited fine and/or imprisonment for a maximum of two years.  

  “Whilst this case targets specific advertising practices, it should also be noted that the Regulations cover unfair commercial practices from all sectors and investigations may be brought by a local Trading Standards team as well as the CMA.” 

John warns: 

“The CMA’s court action against Emma Group highlights the importance of transparent and responsible marketing practices for all online businesses. It shows that tactics like countdown timers or high-demand prompts if used misleadingly, can lead to regulatory action, as these techniques risk pressuring consumers into purchases based on artificial urgency.  

“Businesses can learn that complying with consumer protection laws isn’t just about avoiding penalties. It’s about fostering trust and clarity in customer interactions. Ensuring all discounts and urgency claims are genuine can prevent potential legal issues and contribute to long-term customer loyalty.” 

For more information about business regulation legal best practice, contact John Hartley directly via john.hartley@primaslaw.co.uk 

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