From today, businesses operating online must stop using hidden fees and fake reviews, under sweeping new consumer protection laws that aim to save UK shoppers billions and boost confidence in digital marketplaces.
The reforms – introduced as part of the Digital Markets, Competition and Consumer Act 2024 – target so-called “sneaky” or “dripped” fees, which are estimated to cost consumers £2.2 billion annually. These hidden charges, often added late in the purchase process, will now have to be clearly included in the upfront price.
The rules apply to a wide range of sectors, including ticketing platforms, travel sites, food delivery apps and broadband providers. Mandatory charges such as booking fees or installation costs must now be displayed in the headline price. Optional extras, like priority seating or luggage upgrades, are exempt.
The legislation also introduces a crackdown on fake reviews – a growing problem in online retail. Businesses will be held accountable for reviews published on their platforms, and will be required to take action to prevent the spread of fraudulent endorsements.
A government-commissioned study found that up to 10 per cent of reviews on third-party e-commerce sites are likely fake, often paid for to boost product rankings or falsely reassure customers. With online reviews influencing around 90 per cent of consumer purchases and contributing to £217 billion in online retail sales last year, the impact of misleading reviews is substantial.
Justin Madders, Minister for Employment Rights, Competition and Markets, said the new rules will better protect consumers while supporting fair business practices.
“From today, consumers can confidently make purchases knowing they are protected against fake reviews and dripped pricing,” he said. “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.”
Research for the Department for Business and Trade in 2023 revealed that almost half of entertainment platforms imposed hidden mandatory fees, with consumers often needing to navigate more than ten webpages before completing a purchase.
In the hospitality and holiday sector, 21 per cent of businesses were found to include such fees, while in retail – excluding delivery – the figure stood at 3 per cent. These practices not only added to overall costs but also caused significant frustration for users trying to understand the true price of a product or service.
The Competition and Markets Authority (CMA) will be tasked with enforcing the new rules. The regulator will have the power to take legal action against companies that flout the requirements, and businesses failing to comply could face substantial penalties.
The move follows action by global firms like Amazon, which has filed multiple lawsuits against fake review brokers. The online retail giant claims it has blocked millions of attempts to post fake reviews and continues to develop AI tools to detect suspicious activity.
Officials say the UK’s reforms will ensure diners are no longer misled by five-star reviews only to be served sub-par meals, or left disappointed by products that fail to match their glowing online descriptions.
For legitimate businesses, the legislation is expected to create a more level playing field, preventing dishonest operators from gaining an unfair advantage through misleading practices.
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UK bans £2.2bn in hidden fees and fake reviews under new consumer protection law