CMA launches legal action against Emma Group
The UK’s competition watchdog has launched legal proceedings against mattress seller Emma Group after finding “harmful online selling practices”.
The Competition and Market Authority (CMA) opened an investigation into Emma Group back in 2022 over the use of online urgency claims, such as countdown clocks.
As a result, the CMA said it sent a consultation letter last July after it found specific concerns about Emma Sleep’s online sales practices, asking the group to take steps to address the issues.
The CMA later threatened Emma Group, stating it was preparing to take legal action if it does not commit to changing its practices without unnecessary delay.
The watchdog revealed today that it has determined that it is necessary to seek an enforcement order from the court against Emma Group requiring it to change its online selling practices.
The CMA filed its claim in the High Court on Thursday 17 October 2024.
Commenting on the action, George Lusty, the CMA’s interim executive director said: “We are concerned that when sales tactics such as discounts and countdown clocks are used in a misleading way, they can pressure shoppers into making quick purchases and spending more than they otherwise would, for fear of missing out.”
“We have given Emma sufficient opportunity to alter the way it does business to address our concerns. They have failed to make all the changes that we require, which is why we’ve progressed to court action,” he added.
While a spokesperson for Emma Group said: “The CMA first contacted Emma UK back in November 2022 to express concerns about some of our marketing practices. In response, we took action and made adjustments.”
“Emma UK considers that it is now in full compliance with consumer law and has been for some time.”
“However, the CMA wants Emma UK to also limit the number of products sold at a discount off the full or ‘reference’ price.”
“This unnecessary red tape will harm consumers in the UK. And this intervention is happening at a time when consumers have already suffered from inflation and a tough economy.”
“Hence, we have decided not to settle with the CMA to implement a practice that will harm consumers. As a growing, innovative business, Emma UK remains committed to providing excellent deals to consumers for a great night’s sleep, while complying with consumer laws,” the spokesperson added.
This story was updated to include Emma Group’s response to the CMA’s announcement.