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What is drip pricing, and why has it been banned in the UK?
New rules coming into force from today also ban fake and misleading reviews online.
New measures banning so-called drip pricing and fake reviews have come into force in a bid to prevent online shoppers from being ripped off.
Campaigners have welcomed the banning of hidden fees for online shoppers - a practice described by Citizens Advice as a "disgraceful way to mislead consumers into paying more than they expect".
Consumer champion Which? has campaigned for drip pricing to be outlawed for years, warning it causes "multiple harms" to shoppers while weakening competition.
The measures come under the Digital Markets, Competition and Consumers Bill approved by Parliament last year.
What is drip pricing?
Drip pricing is where consumers are shown an initial price for a good or service only to be shown additional fees later in the checkout process.
The practice allows businesses to "take advantage of common, well-established behavioural biases", a report by Which? said, as shoppers already hooked in by the headline price "struggle to adjust their decision-making to account for these additional costs".
"The effort consumers have committed to a purchasing journey before they are able to see the full price can also discourage them from returning to the searching stage and comparing with other providers, ultimately rewarding businesses who engage in these practices," Which? added.
https://uk.yahoo.com/news/drip-pricing-banned-uk-105439788.html
New measures banning so-called drip pricing and fake reviews have come into force in a bid to prevent online shoppers from being ripped off.
Campaigners have welcomed the banning of hidden fees for online shoppers - a practice described by Citizens Advice as a "disgraceful way to mislead consumers into paying more than they expect".
Consumer champion Which? has campaigned for drip pricing to be outlawed for years, warning it causes "multiple harms" to shoppers while weakening competition.
The measures come under the Digital Markets, Competition and Consumers Bill approved by Parliament last year.
What is drip pricing?
Drip pricing is where consumers are shown an initial price for a good or service only to be shown additional fees later in the checkout process.
The practice allows businesses to "take advantage of common, well-established behavioural biases", a report by Which? said, as shoppers already hooked in by the headline price "struggle to adjust their decision-making to account for these additional costs".
"The effort consumers have committed to a purchasing journey before they are able to see the full price can also discourage them from returning to the searching stage and comparing with other providers, ultimately rewarding businesses who engage in these practices," Which? added.
https://uk.yahoo.com/news/drip-pricing-banned-uk-105439788.html