New powers to crack down on so-called ‘drip pricing’ are to be sought by the government.
Conformation came in the King’s Speech on Tuesday as it set out a list of legislation Whitehall hopes to introduce.
The current practice, used in particular by budget airlines, is where the initial advertised price is then loaded with extra fees by the time the buyer reaches the checkout.
The government said that, subject to consultation, its Digital Markets, Competition and Consumers Bill, will propose new powers to tackle drip pricing.
Consumers ordering food and drink for delivery, buying package holidays, airline tickets, concert and event tickets, and sending parcels are all affected by drip pricing, the government said.
It is thought likely that consumers would be presented with various different price points when searching for a flight – a basic fare, one including cabin bags and a third including hold bags – if a ban on drip pricing was introduced.
A spokesperson for Airlines UK told The Times: “Unbundling products and offering greater choice that consumers demand is an important way that airlines compete and is well understood to have enabled air travel to become accessible for all.
“Any moves to reverse this are clearly not in the interest of UK consumers and we will respond to the government’s proposals when we have more details.”
A government source indicated that no decision has been made and that the responses to the consultation were still being considered.
At the same time, consumer group Which? criticised the government for failing to provide the Civil Aviation Authority with direct fining powers.
Policy and advocacy director Rocio Concha said: “While it’s encouraging to see that the government is setting out legislation to tackle unfair pricing practices, it’s disappointing that the prime minister has failed to combat routine lawbreaking from airlines that often leaves passengers feeling abandoned and out of pocket.
“For too long consumers have suffered as a result of airlines’ poor behaviour going all but unchecked, with airlines showing a blatant disregard for passenger rights during periods of disruption, and making it difficult to compare ticket prices by adding fees for add-ons like seat selection late in the buying process.”