The United Kingdom has banned “outrageous fake reviews and sneaky hidden fees” to make life easier for online shoppers. New measures under the Digital Markets, Competition, and Consumer Act 2024 came into force on Sunday that require online platforms to transparently include all mandatory fees within a product’s advertised price, including booking or admin charges.
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.
Source: UK bans fake reviews and ‘sneaky’ fees for online products | The Verge
In the EU these practices have been banned for years
EU action to protect consumers from ‘junk fees’
Answer given by Mr Reynders on behalf of the European Commission (2023)
Robin Edgar
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