Huge change to online shopping for millions as hidden fees to be SCRAPPED – with two exceptions

A HUGE change to online shopping rules is on the way for millions as hidden fees are set to be scrapped.

These surprise charges or “drip pricing” are set to be banned under new laws to force businesses to be upfront with customers.

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Drip pricing sees a retailer lead with a headline price but at checkout, the final price is higher after any necessary additional charges are applied.

This makes it harder for consumers to compare prices across retailers.

These unavoidable fees cost consumers £2.2billion every year, according to the Department for Business and Trade (DBT).

Under new rules, these hidden fees will be banned, as well as fake reviews and firms will have to provide clearer labelling for prices on supermarket shelves.

They will force mandatory fees to be included in the headline price or at the start of the shopping process.

This includes booking fees for cinema and train tickets.

There are two exceptions though, optional fees such as airline seats and luggage upgrades for flights will not be included in the measures.

The measures will be legislated as part of the Digital Markets, Competition and Consumers Bill as it makes its way through Parliament.

Research by the DBT suggested drip pricing is widespread and used by 54% of entertainment providers.

Plus it was found across 56% of the hospitality industry, and 72% of the transport and communication sectors.

Minister for Enterprise, Markets and Small Business Kevin Hollinrake said: “From supermarket shelves to digital baskets, modern-day shopping provides customers with more choice than ever before.

“But with that comes the increased risk of confusion, scams and traps that can easily cost the public more than they had planned.”

Mr Hollinrake went on to say that today’s announcement ensures customers can compare purchases with ease, and aren’t duped by fake reviews, and have the “sting” of hidden fees taken away.

The DBT found reviews are used by 90% of consumers and contributed to the £224billion spent in online retail markets in 2022.

The Competition and Market Authority has also contributed to new guidance to tackle fake reviews.

This would make website hosts accountable for reviews on their pages.

Elsewhere, the Price Marking Order, which forces traders to display the final selling price, and where appropriate the final unit price – for example, the price per kg – will also be reformed.

The DBT said the proposed changes would ensure unit pricing was applied more consistently.

This includes to promotions and special offers, to help consumers compare products easily and identify what items represent the best value.

These are expected to be rolled out in the spring.

British Retail Consortium assistant director Graham Wynn said: “The BRC looks forward to continuing to work with officials as practical detailed implementation plans are developed.

“We are committed to ensuring information given to consumers is clear and they are not misled in any way.”

The news today comes after a regulator found online train ticket retailers are using drip pricing with booking fees of up to £6.45 per transaction.

The Office of Rail and Road (ORR) said back in December that the companies must ensure their booking or finder’s fees are included in upfront prices.

How can I cut costs when shopping online?

If you’re shopping online and know exactly what you need make sure to write a list.

This will help discourage overspending on items that aren’t on your list.

Make sure to use price comparison tools like Google Shopping to find similar products from other retailers and compare prices.

And remember, if you spot a bargain it’s only a good deal if you need the item in the first place.

If you purchase something just because it’s on offer, you aren’t necessarily saving money.

Here are five other ways to cut your online shopping costs:

Become a member

The majority of online businesses offer exclusive discounts for new customers.

If you have more than one email address you can benefit from these offers multiple times.

You’ll not only get access to members-only discounts but you could also get discounted rates on home delivery depending on the retailer.

Sign up for newsletters

Let’s face it, no one likes an inbox full of junk.

But if you subscribe to the newsletters of your favourite brands, you can often access regular savings.

And if you get sick of the endless emails, you can simply unsubscribe.

Don’t buy the first time

If you’re a member or have an account with some retailers you could save money by not purchasing the item you want at first glance.

For example, if you look at the same product two or three times, the retailer might email you about it.

In the best-case scenario, they send you a discount code or exclusive offer.

Worst case scenario, you’re just reminded of the items you didn’t choose to check out.

Search for discount codes

Searching for a retailer’s name and discount codes on a search engine can often be a golden ticket to cheaper prices.

Not all codes are guaranteed to work.

But you might get a direct link to the clearance or sale section of a retailer’s website.

Meanwhile, here are five shopping traps including adding to your bills – and how to avoid them.

Plus, shoppers have dubbed Tesco delivery a “shambles” after groceries didn’t arrive at their door.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected].

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.

This post first appeared on thesun.co.uk