The Competition and Markets Authority (CMA) has launched an investigation into Simba Sleep Limited, focusing on whether the company has misled consumers regarding price reductions and applied undue pressure to encourage quick purchasing decisions.

The investigation centers on two main concerns: the use of potentially misleading claims about the extent of price reductions on mattresses and related products, and the implementation of urgency claims, such as countdown timers, which may mislead consumers regarding the availability of special offers.

This inquiry follows a March 2023 Open Letter from the CMA urging UK businesses to cease sales practices that could violate consumer protection laws. The letter highlighted common online sales tactics that may mislead consumers, including price comparison claims that show a reduced price alongside a higher, struck-through price, and countdown timers that do not accurately reflect the end of offers.

Sarah Cardell, Chief Executive of the CMA, emphasized the importance of ensuring that consumers can recognize genuine deals, especially in light of the rising cost of living. She expressed concern that firms in the mattress sector, including Simba Sleep, might be using price reduction claims in a misleading manner.

The CMA has notified Simba Sleep of the investigation and is gathering evidence to determine if the company has breached consumer protection laws. The outcome of the investigation could lead to undertakings from Simba Sleep, court action, or the case being closed without further action.

This investigation is part of the CMA's broader initiative focused on 'Online Choice Architecture,' which aims to address harmful online selling practices, including pressure selling tactics. The CMA is also investigating other companies, such as Emma Sleep and Wowcher, for similar concerns regarding misleading price discount and urgency claims.