Airline add-ons excluded from govt's ‘drip pricing’ crackdown
James ChappleAirline add-ons such as seat selection, luggage upgrades and other "optional" fees associated with booking flights will be excluded from the government’s crackdown on so-called "drip pricing".
The Department for Business and Trade (DBT), which says consumers are being stung for more than £2 billion every year in "unavoidable hidden fees", has declined to clip airlines’ wings, despite drip pricing being associated with nearly three-quarters (72%) of providers across the transport sector.
Following a consultation, a new Digital Markets, Competition and Consumer Bill (DMCC) will outlaw dripped fees, ban fake reviews and require supermarkets to make their pricing clearer.
"Drip pricing occurs when consumers are shown an initial price for a good or service while additional fees are revealed (or ‘dripped’) later in the checkout process," said the DBT. "Sneaky hidden fees, or dripped prices that are unavoidable, will be banned."
The DBT said the new bill would give online shoppers a clearer idea of what they are spending upfront.
Mandatory fees, meanwhile, must be included in the headline price at the start of the shopping process, such as booking fees for train tickets.
"Optional fees" will not be covered by the new legislation, with the DBT giving the specific examples of airline seats and luggage upgrades.
Kevin Hollinrake, minister for enterprise, markets and small business, said modern day shopping came with an "increased risk of confusion, scams and traps" that can easily end up costing consumers more than they planned.
He added the measures would allow people to "compare purchases with ease" and "have the sting of hidden fees taken away".
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