Watchdog wants clearer, fairer pricing for customers

If you’re hit with charges you weren’t warned about up front, it can be frustrating, confusing and costly.

You feel ripped off and misled, and if everyone’s at it, it’s really hard to compare deals and work out which one’s best.

So the Competition and Markets Authority (CMA) is stepping in to remind businesses that they need to be fair and transparent with their customers.

What’s the CMA doing to help?

The watchdog has launched a campaign stressing that it’s easy for them to get pricing right.

All they need to do is:

• show the total price up front
• include all mandatory charges (like taxes or delivery fees)
• if you can’t give a total yet, make it clear how customers how can work it out

“The first price customers see should be the price they pay,” the CMA says.

The CMA also has new powers, which mean it can:

• decide if a business has broken consumer law without going to court
• order businesses to pay compensation to affected customers
• fine companies up to 10% of their global turnover

“Clear pricing is at the heart of building customer trust,” said Emma Cochrane of the CMA.

“We want businesses to stay on the right side of the law and compete on the strength of their products, not on hidden fees or confusing charges.”

“When companies play fair, everyone benefits.”

What does the law say?

Last year, the law was changed so mandatory fees, like booking fees, delivery charges and taxes, had to be included in the headline price, rather than added later in the purchase process.

But this legislation only applies to unavoidable hidden fees.

So businesses can still drip in optional fees, such as airline seats, while customers are checking out.