New online rules are now being enforced in the UK that change what happens when you reach the till for any online purchase, according to BBC expert Dan Whitworth. The Radio 4 Money Box expert explained that annoying website designs which add large amounts to 'offers' at the final payment stage are now illegal, and the Competition and Markets Authority (CMA) is clamping down.
StubHub Fined Nearly £900,000 for Drip Pricing
Earlier this month, StubHub was fined £889,200 by the UK's competition watchdog for not showing additional fees on tickets until customers reached checkout. The live event ticket marketplace will also have to refund more than 50,000 customers, with an average payout of £10.33. The CMA was investigating the platform as part of a drive to clamp down on illegal and unfair online pricing practices.
The CMA found that StubHub was using an illegal practice known as drip pricing, which can cause fans to be caught out by extra charges and means they may not have had a chance to accurately compare prices between sellers. Mr Whitworth said: “Drip pricing is when you might get drawn in by an initial price and think, oh, okay, £50. Yeah, that looks really good. By the time you’re at the checkout, it’s £60, £70 or whatever. So, all these added on these hidden fees, these fees that are drip priced in.”
Marks Electrical Fined £720,000 for Pre-Selected Boxes
In a similar case, Marks Electrical broke consumer law by using pre-ticked boxes to automatically charge customers for extra services and was ordered to pay a £720,000 fine and £600,000 in customer refunds. Mr Whitworth explained: “Mark’s Electrical is another company that’s been pulled up on this. It was fined £720,000, and this is something for pre-selecting and charging customers extra without their agreement. You know those little tick boxes, sometimes you might get on the checker if they’re, you know, and obviously the idea is you tick them if you want them. If they’re pre-selected for optional extras, well, that’s not part of the rules.”
What the New Rules Mean for Consumers
New rules around timers, pre-selected boxes, and not showing running totals of costs are now being enforced. Consumers are being told to ensure these rules are being carried out. The CMA has written advisory letters to more than 100 firms and has started cases and investigations against eight companies.
Mr Whitworth stressed that these practices are not just dodgy—they are illegal. He said: “You might talk to your friends or, you know, you might think to yourself, ‘Oh, this is a bit of dodgy practice.’ No, it’s illegal. It’s breaching consumer law.” The CMA has released advice to clear up what it describes as a gray area.
Key Requirements: Upfront Display of All Charges
Any additional charge must be displayed upfront. That includes delivery fees, booking fees, VAT, and anything else you have to pay to get the product. The same goes for pre-selected boxes: optional extras like warranties or insurance should not be pre-selected. Mr Whitworth also said people should be given a running total of costs, and warned sites against using timers that reset when you leave the page. He added: “If it’s a sale that ends at midnight, it genuinely ends at midnight. You can tell the consumers that that’s useful, but you know, if you go off the website, then you come back and the timers all of a sudden reset. That’s pressure tactics. That’s something the CMA does not like.”
