MILLIONS of shoppers will be better protected from sneaky fees and fake reviews once and for all following a major change.
A new law comes into effect today meaning households will avoid being duped online and save money.
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Companies selling online now have to include all mandatory fees, including admin or booking fees, in the total headline price rather than feeding them through at different stages of the booking process – known as “drip-pricing”.
The new law will stop a host of hidden fees being added to shoppers’ bills when buying train tickets, concert tickets and takeaways.
The Government said around £2.2billion is spend on hidden fees every year.
Fake reviews will also be banned as part of new rules coming into effect today.
It means punters won’t turn up to restaurants with seemingly glowing online reviews only to find they’re not up to scratch.
Shoppers will also be better protected from fake reviews of products, saving them money and hassle.
Around 90% of shoppers base what products they buy on online reviews, with £217billion spent in the online retail sector in 2023.
Justin Madders, minister for employment rights, competition and markets, said: “From today consumers can confidently make purchases knowing they are protected against fake reviews and dripped pricing.
“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.”
The new rules from today only ban unavoidable fees and not optional fees such as airline seats and luggage upgrades for flights.
They also make it a legal requirement for businesses and online platforms to remove fake reviews from their websites.
Sarah Cardell, chief executive of regulator the Competition and Markets Authority (CMA), said: “We will use these new provisions to safeguard people from harmful and unfair treatment, and to foster the level-playing field for the vast majority of businesses who want to do the right thing for their customers.
“We will be tackling the more egregious practices first and working hard to support businesses with compliance, conscious that – especially for small businesses – the burden of following the rules must be proportionate.”
How to save money shopping online
Consumer reporter Sam Walker reveals a few ways you can save money on your next online shop.
- Use cashback websites – use cashback websites like TopCashback and Quidco where you can get free cash on top of any qualifying purchases.
- Compare prices – make sure you compare prices to ensure you’re getting the best deal. You can use websites like Trolley, Price Spy or Price Runner.
- Factor in delivery costs – plenty of retailers charge you for delivery, even standard delivery, so make sure you read the small print before putting an order in. Some will waive any delivery charges if you spend over a certain amount.
Previous research by the Department for Business and Trade has found drip-pricing is commonly used by online traders.
The Government department found 72% of transport and communication providers used the strategy.
Meanwhile, almost 50% of online and mobile app firms include at least one dripped fee, excluding delivery fees, at the checkout.
Consumer website Which? has previously said while the new regulation introduced from today is promising, further action should be taken to tackle sneaky pricing tactics by firms.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
