New laws will bring an end to hidden charges and fake reviews online
Online shoppers will soon be protected from 'drip pricing', where hidden charges are added at the end of a purchase.
This move is part of new laws to make businesses more honest with their customers. Fake reviews will also be banned, and companies will have to make price labels clearer on supermarket shelves, says the Department for Business and Trade (DBT).
These changes come after a consultation into how transparent businesses are with consumers. These measures will become law as part of the Digital Markets, Competition and Consumers Bill, which is currently going through Parliament.
'Drip pricing' happens when shoppers see an initial price for a product or service, but find out about extra fees later on during checkout. Research shows that this trick is used by 54% of entertainment providers, 56% of the hospitality industry, and 72% of transport and communication sectors, according to the DBT.
These unavoidable fees cost shoppers £2.2 billion every year. Under the new rules, all mandatory fees must be included in the headline price or at the start of the shopping process. This includes booking fees for cinema and train tickets.
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However, optional fees like airline seat and luggage upgrades for flights won't be included in these measures. Minister Kevin Hollinrake has warned: "From supermarket shelves to digital baskets, modern day shopping provides customers with more choice than ever before.
"But with that comes the increased risk of confusion, scams and traps that can easily cost the public more than they had planned." Today's announcement demonstrates the clear steps we're taking as a government to ensure customers can compare purchases with ease, aren't duped by fake reviews, and have the sting of hidden fees taken away."
The DBT reported that nearly everyone uses reviews when they shop online, which helped people spend £224 billion last year. New rules are coming to stop fake reviews, making websites check if reviews are real. Also, the rules about showing prices in shops are going to be updated.
The DBT says these changes will make it easier for shoppers to spot the best deals, especially during sales. These new rules should be ready by spring. Graham Wynn from the British Retail Consortium said: "The BRC looks forward to continuing to work with officials as practical detailed implementation plans are developed.
"We are committed to ensuring information given to consumers is clear and they are not misled in any way." A spokesperson for the CMA commented: "It's positive to see the Government pushing ahead with changes to tackle behaviour that misleads shoppers or leaves them out of pocket which includes accepting the CMA's recommendations for clearer groceries pricing."
The spokesman added: "Stronger laws and tools, including giving the CMA the power to fine companies for breaching consumer law under the DMCC Bill, will bolster the work we are already doing to protect consumers."
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]
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