The Competition and Markets Authority (CMA) has agreed a partial settlement with mattress company Emma Sleep after it admitted to breaking consumer law over its pricing tactics.
The settlement is legally binding, so if Emma Sleep fails to comply, it “could result in contempt of court proceedings, potentially leading to significant penalties,” the CMA said.
This follows the court confirming on 22 May that the mattress company had broken the law over its use of “misleading” countdown timers, false ‘high demand’ messages and discount claims on its website.
The watchdog opened an investigation into the Emma Group in 2022 over its use of discount urgency claims on its website, which were potentially misleading customers, such as countdown clocks.
As a result, the CMA sent the company a letter asking the company to address the concerns it raised over its sales practices, which prompted the regulator to launch legal proceedings after Emma Group failed to address the concerns.
In May 2024, the regulator then threatened the company with legal action if it didn’t commit “to changing its practices”.
The competition watchdog said the settlement gives it power to stop Emma from these practices and “make sure any future claims on its website are clear, accurate and do not create a false impression that people need to act quickly.”
Court action trimmed
The High Court was scheduled to hear the regulator’s full case against Emma Sleep in a trial starting on 3 June, but the case will potentially be trimmed down following the partial settlement being reached.
However, a dispute over the validity of the company’s discounting strategy, where it displayed a higher original price with a lower sale price, which the regulator found did not represent a genuine saving, is set to be heard in court.
“Businesses should be clear on what the law says: using fake countdown clocks or misleading ‘discounts’ to push people into spending is illegal,” Hayley Fletcher, senior director of consumer protection at the CMA, said.
“Our message to businesses is simple – get your house in order or deal with the consequences,” she added.
Emma Sleep was contacted for comment.
