The UK government has said it will bring in new rules on hidden fees on online purchases such as tickets and flights.
The move will force sellers to indicate any mandatory costs in the headline sale price.
The development comes after the government announced in November that it was planning a crackdown on so-called “drip-pricing”.
Dripped Prices
According to gov.uk, “Drip pricing occurs when consumers are shown an initial price for a good or service while additional fees are revealed (or “dripped”) later in the checkout process.”
Under new laws, this practice will be banned.
Research suggests that this is a widespread problem and occurs in over half of providers in the entertainment (54%) and hospitality (56%) industries.
Unavoidable Fees
Consumers ordering food for delivery, buying package holidays, airline and concert tickets, can end up paying a higher price than first indicated due to unavoidable fees such as booking fees.
The crackdown will see all mandatory fees declared up front rather than being added at the end.
Fees for extra items, such as booking a bag or assigned seat on a flight, are not counted in this as they are not mandatory charges.
The laws will also see fake reviews of products or services banned, for more consumer clarity when shopping online.
Ticketmaster
In the US, bills are already in motion following a number of complaints from artists about the hidden fees on events giant Ticketmaster.
In November 2022, when tickets for Taylor Swift’s Eras Tour went on sale, purchasers were faced with extortionate fees at the checkout.
In June, Ticketmaster and other vendors were praised for adopting an 'all-in' upfront pricing model in response to the backlash.
