The United Kingdom has officially banned hidden fees and fake reviews, aiming to protect consumers from unfair practices that cost an estimated £2.2 billion annually.
Under sweeping reforms introduced through the Digital Markets, Competition and Consumers Act 2024, businesses must now display all unavoidable fees upfront.
This applies to industries notorious for “drip pricing”, including travel booking sites, ticketing platforms, and food delivery apps, where hidden costs can inflate the final bill by more than 25%.
From today, companies must include all additional charges, such as broadband installation costs or ticket administration fees, within the advertised price. Firms failing to comply could face substantial penalties.
The new law also targets the proliferation of fake online reviews. A 2023 study by the Department for Business and Trade revealed that around one in 10 product reviews on third-party platforms were likely fabricated.
With 90% of shoppers relying on reviews before making purchases, fake endorsements have severely distorted consumer trust. In 2023 alone, Britons spent over £217 billion in online retail markets, making transparency crucial.
Minister for Employment Rights and Markets, Justin Madders, hailed the changes, stating: “From today, consumers can confidently make purchases knowing they are protected against fake reviews and dripped pricing.
These reforms empower shoppers and create a fairer environment for legitimate businesses.”
The crackdown addresses widespread concerns about “dripped” fees — costs only revealed at the final stage of purchasing — which have plagued the holiday, hospitality, and entertainment sectors.
Recent data showed that 45% of entertainment providers and 21% of holiday firms engaged in such practices, while 3% of retailers were also implicated.
Businesses must now take proactive steps to verify the authenticity of customer reviews linked to their products or services.
This includes preventing the publication of fraudulent endorsements that could mislead consumers into buying substandard goods or booking disappointing services.
The restaurant industry, a common hotspot for phoney five-star reviews, is expected to feel the impact, with diners often discovering that their experiences fall far below the glowing online ratings.
In parallel, private firms like Amazon have already launched lawsuits against brokers running fake review schemes, signalling broader industry support for the government’s new measures.
The Digital Markets, Competition and Consumers Act 2024 represents one of the most significant overhauls of UK consumer protection law in recent years, promising a future of greater transparency and accountability across the marketplace.
