Wowcher to issue £4m of refunds to almost 900,000 customers

A landmark case in the UK has seen Wowcher told to pay out refunds totalling £4 million to almost 900,000 people across the country.

Wowcher is one of the country's largest e-commerce sites, specialising in daily deals on everything from restaurant experiences up to bargain holidays overseas and fitness memberships.

There are some really good deals on there and when you get them, you aren't half left feeling smug as anything.

Refunds have been ordered to thousands of customers across the UK. (Getty Stock Image)

But following an investigation by the Competition and Markets Authority (CMA) the watchdog is now cracking down on what it has called 'pressure selling tactics' brought about by the website.

As a result, refunds have been ordered to a massive 870,000 customers across the United Kingdom.

Why are refunds being issued?

It's all to do with Wowcher's 'VIP' subscription package, which the company says grants early access to the best deals as well as exclusive offers and discount codes.

The problem is that people were signed up to the service using a pre-ticked box on the website. In other words, it was selected for you rather than wilfully.

Martin Lewis' team at MoneySavingExpert.com first warned consumers about the pre-ticked boxes way back in 2022. This was after an investigation by the team found that a significant number of people had been caught out.

As a result of the CMA investigation, £4m has been put aside for claims.

One of the Wowcher adverts that gave a false sense of urgency to customers (Gov.uk)

Wowcher says it'll change

Say goodbye to Wowcher's pre-ticked boxes for its VIP package. From now on, you'll have to manually opt in.

The CMA was also concerned about Wowcher's use of countdown timers and various marketing claims. This included phrases such as 'running out!' and 'in high demand!'.

Using these pressurised phrases created a bubble of urgency that was not necessarily true, and influenced what people bought, the CMA ruled.

As a result Wowcher will now use clear and accurate countdown timers to stop giving false impressions that a customer is missing out on a deal. It also must accurately reflect what stock is left if it wishes to market goods in such a way.

Refunds loom large. (Getty Stock Image)

How to claim a Wowcher refund

The MSE team says: "If you were signed up to Wowcher's VIP service via a pre-ticked box at the checkout, a £4.99 refund will be automatically credited to your Wowcher account by Wednesday, 14 August. Look out for an email or text from Wowcher confirming this. The credit will be valid for one year from the date it was issued.

"Payments for Wowcher's VIP service do not auto-renew, so most affected customers were only charged £4.99 once."

Wowcher told MSE that a 'very small number' of customers were signed up via a pre-ticked box more than once, and that they would be refunded for each payment.

A Wowcher spokesperson said: "We are happy to take on feedback to improve the clarity of our promotions and to further enhance our customers’ experience."