New legal changes to eliminate hidden fees on online purchases are set to save shoppers billions of dollars. Drip pricing will be banned as part of the government’s crackdown on unfair trade practices affecting consumers.
Fake reviews and shop labeling will also be covered as part of the Digital Markets, Competition and Consumers Bill (DMCC) following the consumer transparency consultation. Unavoidable fees from online shopping are costing British consumers £2.2bn, according to the government.
Shoppers save money as government bans hidden fees
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Drip pricing occurs when consumers see an initial price for a product or service, but additional charges are revealed later in the checkout process.
According to the study, this occurs in 54% and 56% of providers in the entertainment and hospitality industries, respectively.
According to research cited by the government, drip pricing is practiced in almost three-quarters of the transport and communications sectors.
Kevin Hollinrake, Minister for Enterprise, Markets and Small Business, said: “From supermarket shelves to digital baskets, modern shopping offers customers more choice than ever before.
“But with that comes the increased risk of confusion, fraud and entrapment that could easily cause more harm to the public than planned.
“Today’s announcement demonstrates the clear steps we are taking as a government to ensure customers can easily compare their purchases, avoid being fooled by fake reviews and avoid being burdened with hidden fees.”
Graham Wynne, assistant director of the British Retail Consortium, said:
“We strive to ensure that the information provided to consumers is clear and not misled in any way.”
Traders are upfront about costs
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The Competition and Markets Authority (CMA) will be responsible for ensuring that the changes are implemented.
A CMA spokesperson said: “It’s positive to see the government bringing forward reforms to tackle behavior that misleads shoppers or makes them pay. This includes accepting the CMA’s recommendations on food pricing.”
“Stronger laws and tools, such as giving the CMA powers to fine businesses that breach consumer law under the DMCC Bill, will strengthen the work we are already doing to protect consumers. It will be.”