High Court hands down Emma Sleep judgement on reference pricing

The High Court has handed down its judgment in relation to the use of ‘was/now’ pricing – also known as reference pricing – regarding a case against Emma Sleep.

The High Court found that mattress brand Emma Sleep had infringed the law in relation to a number of admitted breaches, but did not make further findings of infringement.

The Court has invited the Competition and Markets Authority (CMA) and Emma Sleep to work together to agree the terms of a further order.

While the CMA carefully considers the judgment and its next steps, it is temporarily withdrawing the online mattress sales guidance.

The judgement can be seen here.

Back in May this year, the CMA secured a court-confirmed settlement with Emma Sleep in the High Court following Emma Sleep admitting it broke consumer law by using misleading countdown timers, and false ‘high demand’ messages and ‘discount’ claims that created false pressure on consumers to make purchases.

As part of the settlement, Emma Sleep has given binding undertakings to stop these practices and ensure that future claims on its website are clear, accurate and do not create a misleading sense of urgency.

Under the terms of the settlement, Emma Sleep must also implement robust compliance measures across its business, including monitoring adherence to the undertakings, reporting to the CMA, and taking prompt action to address any potential breaches.

The commitments are legally binding and enforceable by the Court, meaning that any failure to comply could result in contempt of court proceedings and significant penalties.

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