The UK has introduced new regulations under the Digital Markets, Competition, and Consumer Act 2024 to protect online shoppers by banning hidden fees and fake reviews. Effective immediately, these regulations require that all mandatory charges be included in the advertised price to eliminate 'dripped pricing', where shoppers are surprised by additional fees at checkout. The law applies to services like food delivery and ticket booking. Businesses are also barred from using fake reviews, and will face severe penalties for not moderating their consumer reviews properly, enhancing transparency in online markets.
The Digital Markets, Competition, and Consumer Act 2024 demands online platforms transparently display all mandatory fees in product prices, eliminating hidden costs that deceive shoppers.
This legislation specifically targets 'dripped pricing' to prevent consumers from facing unexpected fees at checkout, ensuring fairer Online shopping experiences.
According to CMA guidance, platforms must take 'reasonable steps' to eliminate fake reviews, with possible fines up to 10% of annual global turnover for non-compliance.
Justin Madders stated that the new legislation aims to end the shock consumers experience when extra fees appear unexpectedly during their online shopping experience.
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