Online Shoppers Hidden Fees: Are They Going To Be Banned in UK?

Online Shoppers Hidden Fees: A new rule that eliminates hidden fees on internet transactions would save billions of pounds for British citizens. The new regulation encourages shops to list all of their pricing clearly and without any additional fees.

Companies must increase transparency about pricing labels on supermarket shelves and are not allowed to post fake reviews.

The modification is a result of consumer transparency consultations and is a component of the Digital Markets, Competition and Consumer Bill (DMCC).

Consumers in the UK lose £2.2 billion to inevitable costs associated with online purchasing, according to the Government.

The new rule encourages merchants to list pricing clearly and transparently, without any additional fees.(Photo courtesy of Getty)

Drip pricing is the practice of offering customers on a website an initial price for a good or service, only to reveal additional costs as they go through the checkout process.

Online Shoppers Hidden Fees

According to research, this occurs in 54% and 56% of suppliers in the hotel and entertainment sectors, respectively.

Per studies provided by the government, it occurs in over three-quarters of the transportation and communication industries.

The goal of the new regulations is to provide consumers greater transparency so they know the whole cost of an item before they purchase it.

According to the new regulations, required fees have to be shown online in the headline rates.

Booking costs for movie or rail tickets, for instance, should be made explicit at the beginning.

The restrictions will not apply to fees for optional add-ons like upgraded baggage or airline seat bookings. It is anticipated that the new regulations will take effect this spring.

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The Minister of Enterprise, Markets, and Small Business, Kevin Hollinrake, stated: “Today’s shoppers have more options than ever before, from digital baskets to supermarket shelves.

“However, this also increases the possibility of misunderstandings, frauds, and traps, which can easily cost the general public more than they had budgeted.

“Today’s announcement highlights the explicit actions our government is taking to guarantee that consumers can easily compare purchases, aren’t tricked by false reviews, and don’t have to suffer the pain of unstated costs.”

“The BRC looks forward to continuing to work with officials as practical detailed implementation plans are developed,” stated British Retail Consortium assistant director Graham Wynn.

“We are dedicated to making sure consumers receive clear information and are never misled in any way.”

Ensuring the implementation of the amendments will be the responsibility of the Competition and Markets Authority (CMA).

“It’s encouraging to see the government moving forward with measures to address behaviour that misleads shoppers or leaves them out of pocket,” a CMA spokeswoman said. “This includes adopting the CMA’s recommendations for more transparent grocery pricing.”

“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.”