The law targets so-called “dripped pricing,” in which additional fees — like platform service charges — are dripped in during a customer’s checkout process to dupe them into paying a higher price than expected. The ban “aims to bring to an end the shock that online shoppers get when they reach the end of their shopping experience only to find a raft of extra fees lumped on top,” according to Justin Madders, the UK’s Minister for Employment Rights, Competition and Markets.
The legislation will apply to things like food delivery services and ticket booking platforms, requiring that obligatory delivery and administration fees be baked into the overall price or clearly displayed at the start of the checkout process. Optional fees, however, such as those applied to choosing airline seats or upgrading luggage allowances, will be unaffected.
The new rules also ban businesses from using or commissioning fake reviews in an attempt to artificially inflate online ratings. Website providers are responsible for moderating their online reviews. According to CMA guidance, “anyone who publishes or provides access to consumer reviews or consumer review information” will be under obligation to take “reasonable and proportionate steps” to remove and prevent fake reviews, or face an infringement investigation. The UK’s Competition and Markets Authority (CMA) can impose fines for non-compliance of up to 10 percent of a company’s annual global turnover.
“From today consumers can confidently make purchases knowing they are protected against fake reviews and dripped pricing,” said Madders. “These changes will give consumers more power and control over their hard-earned cash, as well as help to establish a level playing field by deterring bad actors that undercut compliant businesses, helping to deliver economic stability as part of our Plan for Change.”
