Major appliance firm ordered to pay 40,000 shoppers compensation - are you eligible?

Nearly 40,000 shoppers are set to receive refunds after the Competition and Markets Authority found Marks Electrical had automatically enrolled customers into paid services without obtaining their consent.

The regulator said affected customers will share refunds worth around £600,000, equating to an average payment of about £15 each.

Marks Electrical has also agreed to pay a penalty of £720,000 after the Competition and Markets Authority (CMA) concluded the retailer had breached consumer protection laws.

Emma Cochrane, executive director of consumer protection at the CMA, said: "The law is absolutely clear that automatically opting customers into extra charges is never ok."

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She added: "Buying a new washing machine, dishwasher or cooker is expensive and people should have the right to decide if they want optional extras not be landed with costs that they did not agree to."

The investigation examined purchases made between April and November 2025 and found the retailer had pre-selected charges for additional services that customers had not actively chosen.

These services included fees for unwrapping newly delivered appliances and removing packaging, alongside charges for collecting and recycling old products.

Consumer protection legislation requires businesses to give customers a genuine opportunity to decide whether they wish to purchase optional services.

Retailers cannot sign consumers up to additional paid services without first securing their explicit agreement.

Customers who made purchases during the investigation period and paid for services they did not select will automatically receive refunds through their original payment method.

Where it is not possible to return money through the initial payment route, affected shoppers will instead receive a cheque.

Alongside the regulatory action, Marks Electrical adopted a cautious outlook for the year ahead, citing fragile consumer confidence and continued pressure on household finances.

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Concerns about instability in the Middle East and the potential impact on living costs were also highlighted as risks to consumer demand.

Although the company reported stronger sales of televisions and sound systems linked to a recent sporting event, it said overall consumer confidence remained subdued.

Marks Electrical said it was taking a more guarded approach to expectations for revenue growth and profit margins over the coming year.

Investors reacted negatively to the update, sending the company's shares down seven per cent.

Annual results published on Friday showed the retailer reduced its reported pre-tax losses to £366million for the year ending March 31, compared with £1.7million a year earlier, although these figures should be viewed in the context of the company's wider restructuring efforts.

Turnover declined by 7.9 per cent as Marks Electrical deliberately reduced its presence on third-party marketplaces to focus on direct sales through its website and telephone channels.

Trading improved during the second half of the financial year, with revenues increasing by five per cent.

Chief executive Mark Smithson said: "After a challenging first half, we were able to deliver an improved second half performance thanks to our disciplined focus on margin and operational cost management."

Mr Smithson added that the company would continue to navigate macroeconomic challenges, including inflation, interest rates and unemployment levels, as it seeks to improve profitability.

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