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Airlines targeted as part of government crackdown on ‘drip pricing’

A crackdown on hidden fees is likely to see airlines forced by government to be more transparent in the full cost of fares.

Government research confirmed so-called ‘drip pricing’ – where the price paid at checkout is higher than originally advertised due to extra, but necessary, fees – is widespread.

The study, published today (Monday), will inform a consultation to ensure government roots out where drip pricing harms consumers most.

The new research found that almost three quarters (72%) of the transport sector, including air and rail, have hidden fees in their products, “highlighting need for clearer and fairer customer journey”.

Drip pricing also takes place in more than half of providers in the entertainment (54%) and hospitality (56%) industries.

This costs UK consumers £1.6 billion online each year, the government estimated.

Another consultation will seek views on measures to stop fake reviews.

The aim is to ensure that consumers and traders continue to benefit from reviews that represent a genuine experience, while stamping out the purchase and sales of fake reviews, and ensuring firms take an appropriate level of responsibility for reviews on their websites.

A third consultation looks at how to simplify labelling on goods.

The ambition is to ensure unit pricing is consistently applied, including to promotions and special offers, helping consumers compare products easily and identify what items represent the best value to them, according to the Department for Business and Trade.

Enterprise, markets and small business minister Kevin Hollinrake said: “Today’s measures will help people keep hold of their hard-earned cash and ensure they have the clearest and most accurate information upfront before they make a purchase.

“From the shelves of supermarkets to digital trolleys, modern-day shopping provides a great wealth of choice. 

“But fake reviews and hidden fees can make those choices increasingly confusing and leaves customers unsure about what product is right for them.”

He added: “We’ll be listening to industry to ensure these new regulations work for businesses too and don’t generate unnecessary burdens, while at the same time providing a crucial safety net for consumers and their cash.”

Which? policy and advocacy director Rocio Concha said: “Our research shows that fake reviews jeopardise consumer trust and are harmful to honest businesses that don’t purchase or incentivise people to post positive reviews.

“Customers also need clear pricing upfront when considering a product or service and should not find themselves having to pay for charges hidden until the checkout like mandatory booking fees.”

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