UK bans fake reviews and hidden fees that cost Brits £2,200,000,000
The UK has banned fake reviews and hidden fees that cost Brits an estimated £2.2 billion a year.
The fees, commonly associated with travel websites, ticketing platforms, and food delivery apps, have been notorious for inflating the final price of services, often by more than 25%.
Under reforms introduced by the Digital Markets, Competition and Consumer Act 2024, businesses must now include all unavoidable fees —such as installation charges for broadband or administration fees on ticket sales — in the upfront price.
The law is also cracking down on fake reviews – which are notorious for tricking people in buying shoddy products and visiting below-par restaurants.
This much-awaited move addresses long-standing concerns over ‘dripped’ pricing practices, which often ensnare customers into clicking through multiple pages only to uncover hidden costs at the checkout.
A recent report from the Department for Business and Trade highlighted that in the entertainment sector, 45% of service providers engaged in these practices.
The holiday and hospitality sectors weren’t far behind, with 21% revealing similar habits. In contrast, the retail sector, excluding delivery charges, reported 3%.
Justin Madders, the minister for employment rights, competition, and markets, said: ‘From today, consumers can confidently make purchases knowing they are protected against fake reviews and dripped pricing.’
He added: ‘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.’
The laws also take aim at fake reviews.
A study published in April 2023 revealed that approximately one in 10 product reviews on third-party e-commerce platforms are likely to be fabricated.
Often, they are overwhelmingly positive to mislead potential buyers, 90% of whom rely on reviews when making purchasing decisions, according to the Department for Business and Trade.
This growing dependence contributed to £217 billion spent in online retail markets in 2023 alone.
The new laws seek to combat this trend by promoting transparency and honesty.
Under the act, businesses are accountable for the integrity of the reviews associated with their products.
They must also make substantial efforts to prevent the publication of fraudulent reviews.
Phoney reviews are particularly prevalent in the restaurant sector, where diners arrive at supposed five-star establishments to discover one-star service.
The regulations are also designed to lessen the risk of consumers receiving products that do not match their expectations as portrayed in glowing online reviews.
Private sector firms are also taking action independently of government.
Amazon has filed multiple lawsuits against brokers who facilitate fake review schemes.
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