The United Kingdom has taken a significant step towards making online shopping more transparent and trustworthy with the introduction of new regulations aimed at eliminating fake reviews and hidden fees. The Digital Markets, Competition, and Consumer Act 2024, which came into force on Sunday, requires online platforms to clearly display all mandatory fees within a product's advertised price, including booking or admin charges.

The new rules target the practice of "dripped pricing," where additional fees are added during the checkout process, often catching customers off guard. According to Justin Madders, the UK's Minister for Employment Rights, Competition and Markets, the ban aims to "bring to an end the shock that online shoppers get when they reach the end of their shopping experience only to find a raft of extra fees lumped on top."

The legislation will apply to various online services, including food delivery platforms and ticket booking websites, which will now be required to include obligatory delivery and administration fees in the overall price or clearly display them at the start of the checkout process. Optional fees, such as those for choosing airline seats or upgrading luggage allowances, will not be affected.

In addition to tackling hidden fees, the new regulations also ban businesses from using or commissioning fake reviews to artificially inflate their online ratings. Website providers will be responsible for moderating their online reviews, and anyone who publishes or provides access to consumer reviews will be obligated to take "reasonable and proportionate steps" to remove and prevent fake reviews. The UK's Competition and Markets Authority (CMA) can impose fines of up to 10% of a company's annual global turnover for non-compliance.

This move is not unprecedented, as Google introduced similar measures against fake reviews on Maps business pages in the UK last year, which were later rolled out globally. In January, the CMA announced that Google had agreed to improve its processes for detecting and removing fake reviews from its platforms in the UK, and take action against businesses and reviewers posting them.

The new regulations are expected to have a significant impact on the online shopping landscape in the UK, providing consumers with more confidence and control over their purchases. As Madders stated, "From today, consumers can confidently make purchases knowing they are protected against fake reviews and dripped pricing. These changes will give consumers more power and control over their hard-earned cash, as well as help to establish a level playing field by deterring bad actors that undercut compliant businesses, helping to deliver economic stability as part of our Plan for Change."

The move is seen as a positive step towards creating a more transparent and trustworthy online shopping environment, and it will be interesting to see how businesses adapt to these new regulations. As the UK sets a precedent for online consumer protection, it may inspire other countries to follow suit, ultimately benefiting consumers worldwide.