'Drip pricing' should be banned under online shopping reform

Sign up to the View from Westminster email for expert analysis straight to your inboxReceive our free View from Westminster emailPlease enter an email address valid emailPlease enter a valid email addressI would like to receive an email about offers, events and updates from The Independent. Read our privacy notice{{ #verifyErrors }}{{ message }}{{ /verifyErrors }}{{ ^verifyErrors }}Something went wrong. Please try again later.{{ /verifyErrors }}

Hidden fees unavoidable for online consumers – or “trickle pricing” – should be banned under new laws to force companies to be upfront with their customers.

Fake reviews will also be added to a list of prohibited business practices, and businesses will have to provide clearer price labeling on supermarket shelves, the Department of Business and Commerce said ( DBT), following a consultation on consumer transparency.

These measures will be adopted as part of the Digital Markets, Competition and Consumers Bill as and when their progress through Parliament.

Drip pricing occurs when consumers see an initial price for an item or service, only to discover that additional charges are revealed later in the checkout process.

Research suggests it was prevalent and used by 54% of entertainment providers, 56% of the hospitality sector and 72% of the transport and communications sector. sectors, the DBT said.

We are committed to ensuring that the information provided to consumers is clear and that they are not misled in any way.

Graham Wynn, British Retail Consortium

Unavoidable charges cost consumers £2.2 billion every year, he adds.

Under the news rules, mandatory fees must be included in the price displayed or at the beginning of the purchasing process, including movie and train booking fees.

Optional fees such as airline upgrades Airline seats and baggage for flights will not be included in the measures.

Minister for Business, Markets and Small Business Kevin Hollinrake said: “From supermarket shelves to shopping baskets digital, modern shopping offers customers more choice than ever. But with that comes an increased risk of confusion, scams and traps that can easily cost the public more than they bargained for.

“Today’s announcement demonstrates the clear steps that We take as a government to ensure that customers can easily compare your purchases, don't be fooled by fake reviews and avoid hidden fees. »

The DBT said reviews were used by 90% of consumers and contributed to the £224 billion spent on online retail markets in 2022.

The The Competition and Markets Authority (CMA) has contributed to new guidelines to tackle fake reviews, which would make website hosts liable for reviews on their pages.

Meanwhile, Price Marking Order (PMO), which requires merchants to display the final sales price, and where applicable the final unit price – for example the price per kilogram – will be implemented...