UK government bans fake reviews, hidden fees from online shopping

The DMCC Bill, currently progressing through Parliament, will see the introduction of legislation to outlaw fake reviews—a tactic used by 90 per cent of consumers contributing to the £224 billion spent in online retail in 2022. The Bill will also address the issue of dripped fees, which have been costing consumers a staggering £2.2 billion annually, the Department for Business and Trade said in a press release.

To aid consumers in making informed decisions, the Bill mandates that mandatory fees be included in the headline price or at the start of the shopping process.

The government's commitment to ensuring accurate and fair online information extends to working with the Competition and Market’s Authority. Together, they will develop new guidance over the coming months to tackle the issue of fake reviews, holding website hosts accountable for the content on their pages.

Additionally, the Price Marking Order (PMO), a piece of Retained EU Law, is set for reform. The aim is to adapt the law, last updated two decades ago, to modern shopping habits, ensuring clearer and simpler guidance for pricing labels. This reform is anticipated to be released in the spring and will ensure unit pricing is consistently applied, including to promotions and special offers. Small shops currently exempt from the PMO will remain so.

Furthermore, the DMCC Bill will address other consumer issues like subscription traps and enhance the CMA's ability to investigate competition problems and take action against companies that unfairly increase prices.

Graham Wynn, assistant director, British Retail Consortium, 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.”

Fibre2Fashion News Desk (KD)