How Clear Are Your Prices?

The Competition and Markets Authority (CMA) has launched a Clearing Pricing campaign aiming to encourage businesses to be upfront, transparent and fair in their pricing.

Teaming up with TV and radio presenter Alexander Armstrong, the campaign highlights a ‘Three Step Pricing Check’ businesses can use to make sure their pricing is on the right side of the law.

The three steps are:

• Show the total price up front.
• Include all mandatory charges.
• If you can’t give a total yet, is it clear how customers can work it out?

Under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), it is now illegal to introduce additional mandatory fees, such as a booking or delivery fee, taxes or other charges late in the purchase process.

The Act also gives the CMA the powers to fine businesses that break consumer law up to £300,000 or, if higher, up to 10% of their global turnover.

For businesses that are not clear about the new laws, guidance is available from the CMA that explains how to present prices clearly. The guidance provides examples of what should and shouldn’t be done when it comes to delivery charges, administration and booking costs, and periodic payments and could be a useful resource.

See: https://www.gov.uk/government/news/tv-presenter-alexander-armstrong-teams-up-with-the-cma-to-champion-clear-pricing 

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