A significant new law has taken effect in the UK, aiming to protect online shoppers from misleading practices. The legislation bans fake reviews and hidden fees, ensuring consumers have a clearer understanding of what they’re paying for.
Under this law, businesses must include mandatory fees, such as administration and booking charges, in the initial price of goods and services. However, optional extras like airline seat selection or baggage upgrades are exempt from this requirement.
A major focus of the law is on combating fake reviews. Online platforms are now required to implement systems to prevent and remove fabricated reviews, providing consumers with more accurate information about products and services. This move is designed to boost trust in online marketplaces.
The Department for Business and Trade estimates that hidden fees have cost consumers approximately £2.2 billion annually. While the new law doesn’t cover all additional costs, it marks a significant step towards greater transparency and fairness in online transactions.
Justin Madders, Minister for Competition and Markets, emphasized the benefits of the new legislation: “From today, consumers can confidently make purchases knowing they are protected against fake reviews and hidden fees. These changes will give consumers more control over their money and help create a fairer market by discouraging businesses that try to undercut compliant companies.”
These measures are part of the Digital Markets, Competition and Consumers Act, which was passed by Parliament last year. The law aims to empower consumers and promote a more level playing field for businesses, contributing to economic stability.
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