The Competition and Markets Authority has reached a partial settlement with mattress company Emma Sleep after the firm admitted to breaking consumer law over its pricing tactics.
The settlement is legally binding, meaning any failure to comply “could result in contempt of court proceedings, potentially leading to significant penalties,” the CMA warned.
A court confirmed on 22 May that Emma Sleep had broken the law through its use of “misleading” countdown timers, false high demand messages, and discount claims on its website.
The CMA originally opened an investigation into the Emma Group in 2022, examining whether its use of discount urgency claims and countdown clocks were potentially misleading customers.
Following the investigation, the watchdog sent Emma a letter asking the company to address the concerns raised over its sales practices before eventually launching legal proceedings.
The regulator escalated the matter in May 2024, threatening the company with legal action if it did not commit “to changing its practices.”
The CMA said the settlement grants it the power to prevent Emma from continuing these practices and to “make sure any future claims on its website are clear, accurate and do not create a false impression that people need to act quickly.”
The High Court had been scheduled to hear the regulator’s full case against Emma Sleep in a trial beginning on 3 June, but proceedings are expected to be reduced following the partial settlement.
A separate dispute over Emma Sleep’s discounting strategy, where it displayed a higher original price alongside a lower sale price, remains set to be heard in court.
The CMA found that the company’s displayed discounts did not represent a genuine saving for consumers, a matter which has not been resolved through the settlement.
“Businesses should be clear on what the law says: using fake countdown clocks or misleading ‘discounts’ to push people into spending is illegal,” said Hayley Fletcher, senior director of consumer protection at the CMA.
Fletcher issued a broader warning to other businesses, adding: “Our message to businesses is simple – get your house in order or deal with the consequences.”