Nick Glynne, Founder of Buy It Direct Group, has criticised the Competition and Markets Authority (CMA) following its £1.2 million fine against Appliances Direct, questioning whether the penalty is proportionate and accusing the regulator of pressuring the business into accepting a settlement.
The regulator has now fined the retailer £1.2 million and ordered it to refund approximately £432,000 to affected customers after finding breaches of consumer protection law.
However, responding to the decision in a lengthy LinkedIn post, Mr Glynne questioned both the size of the penalty and the way the investigation was conducted.
He claimed the business had faced the threat of a fine of up to £65 million under the CMA’s new enforcement powers, which allow penalties of up to 10 per cent of global turnover for breaches of consumer protection law.
“We have no idea how the CMA calculated our fine,” he said.
Mr Glynne also claimed the company had been offered an £800,000 reduction if it accepted the settlement terms and agreed not to appeal, despite receiving legal advice that it had grounds to challenge both the penalty and customer refunds.
He said the estimated £500,000 cost of contesting the decision, combined with losing the settlement discount, had ultimately influenced the company’s decision.
“In other words, the CMA did exactly what it accused us of: pressuring us to accept its time-limited offer,” he said.
The CMA’s investigation found that Appliances Direct had automatically opted customers into paid-for services, including old-appliance removal and recycling and installation on delivery.
It also found that promotional countdown banners advertising discounts of between £10 and £25 continued appearing beyond their stated expiry dates.
Under consumer protection law, retailers must obtain customers’ express agreement before charging for optional services, while misleading time-limited offers are prohibited.
Mr Glynne acknowledged that mistakes had been made.
“We were wrong not to expire our discount codes,” he said, although he maintained that the discounts were genuine and that the business had received no customer complaints about the promotions.
He also accepted that automatically selecting recycling services was a mistake, but claimed most customers had opted out and that removing the pre-selection had made little difference to take-up.
According to Mr Glynne, the company changed its website as soon as it became aware of the breaches.
The CMA said Appliances Direct had engaged constructively throughout the investigation and received a 40 per cent reduction in its penalty after admitting the breaches and agreeing to settle early.
The regulator has also ordered the business to refund customers affected by the automatic opt-ins, with average payments expected to be around £25.
Wider pressures on UK retailers
Beyond the fine itself, Mr Glynne used his statement to raise concerns about the wider challenges facing British retailers.
He pointed to growing competition from overseas sellers, alongside rising employment costs, taxation and regulatory requirements.
“All this while we fight the battle of our lives against an unprecedented wave of competition from Chinese traders, alongside rising employment costs, taxes and regulation,” he said.
The comments echo concerns Mr Glynne previously raised when the CMA first announced its investigation in November 2025.
At the time, he warned that UK retailers were facing unfair competition from overseas businesses selling non-compliant products and allegedly avoiding duties and taxes, while domestic operators continued to absorb increasing costs.
The latest enforcement action comes under the Digital Markets, Competition and Consumers Act 2024, which gives the CMA greater powers to investigate and penalise businesses directly for breaches of consumer law.
In announcing the fine, Hayley Fletcher, Senior Director for Consumer Protection at the CMA, said businesses must ensure customers receive accurate pricing information and are able to decide for themselves whether to purchase optional extras.
She warned that companies failing to comply with consumer protection requirements risk substantial financial penalties.
The Appliances Direct case follows similar enforcement action against Marks Electrical, which was fined £720,000 earlier this year over the automatic addition of optional services.
Together, the cases highlight the increased scrutiny facing retailers over online checkout practices, promotional offers and additional services.
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