The Competition and Markets Authority (CMA) has introduced groundbreaking laws banning fake reviews and hidden fees, effective today. These measures, part of the Digital Markets, Competition and Consumers Act 2024, aim to safeguard consumers from deceptive practices and foster fair competition across the UK market.
Crackdown on Fake Reviews
Under the new regulations, businesses are prohibited from posting fake or misleading reviews. This includes paying for positive feedback or incentivizing reviews without clear disclosure. Review platforms now face a legal obligation to implement “reasonable and proportionate” steps to prevent and remove fraudulent reviews. For instance, a restaurant can no longer pay for a five-star rating without stating it’s sponsored, ensuring consumers rely on authentic feedback when making decisions.
End to Hidden Fees
The CMA has also targeted “drip pricing,” a practice where mandatory fees—like booking charges—are added at checkout rather than displayed upfront. From now on, all compulsory costs must be included in the headline price. For example, a £50 concert ticket must reflect the full £60 price—including a £10 booking fee—from the start. Optional extras, such as upgrading an airline seat, remain exempt. This rule will apply to sectors like train tickets, takeaway orders, and entertainment bookings, tackling an issue costing consumers an estimated £2.2 billion annually.
Enforcement and Impact
The CMA will enforce these laws through civil penalties, focusing on the worst offenders while offering guidance to small businesses to adapt. The government predicts these changes will empower consumers to make informed choices, save money, and level the playing field for honest businesses. Kevin Hollinrake, Minister for Business and Markets, stated, “These steps ensure customers can compare purchases easily, free from fake reviews and unexpected fees.” CMA CEO Sarah Cardell added, “We’ll use these powers to protect people and support businesses that treat customers fairly.”
Why It Matters
Research shows that 90% of online shoppers trust reviews, while hidden fees have long frustrated consumers, particularly in e-commerce. With the UK’s online retail market hitting £217 billion in 2023, these laws address growing concerns over transparency. While hailed as a win for consumers, some small businesses worry about the cost of compliance, though the CMA has pledged support to ease the transition.
Looking Ahead
The ban marks a significant step in the government’s “Plan for Change,” promising economic stability and consumer protection. As the rules take effect, shoppers can expect clearer pricing and more reliable reviews—whether booking a holiday or ordering dinner online.
For more details, visit GOV.UK.
