The UK has officially banned fake reviews and hidden fees that have cost consumers an estimated £2.2 billion a year. The new regulations, which took effect on April 6, 2025, are part of the Digital Markets, Competition and Consumer Act 2024 and aim to enhance transparency in pricing across various sectors, including travel, entertainment, and food delivery.
Hidden fees, often associated with travel websites, ticketing platforms, and food delivery apps, have been notorious for inflating the final price of services, frequently by more than 25%. Under the new law, businesses are required to include all unavoidable fees—such as installation charges for broadband or administration fees on ticket sales—in the upfront price. This move addresses long-standing concerns regarding ‘dripped’ pricing practices, which ensnare customers into navigating multiple pages only to uncover hidden costs at checkout.
A recent report from the Department for Business and Trade highlighted that 45% of service providers in the entertainment sector engaged in these deceptive practices, while 21% in the holiday and hospitality sectors admitted to similar habits. In contrast, the retail sector, excluding delivery charges, reported only 3% of such practices.
Justin Madders, the minister for employment rights, competition, and markets, expressed optimism about the changes, stating, "From today, consumers can confidently make purchases knowing they are protected against fake reviews and dripped pricing." He added, "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."
The laws also take aim at fake reviews, which have become a significant concern for consumers. A study published in April 2023 revealed that approximately one in ten product reviews on third-party e-commerce platforms are likely to be fabricated. These overwhelmingly positive reviews mislead potential buyers, as 90% of consumers rely on reviews when making purchasing decisions. This growing dependence contributed to a staggering £217 billion spent in online retail markets in 2023 alone.
The new regulations mandate that businesses are accountable for the integrity of the reviews associated with their products. They must make substantial efforts to prevent the publication of fraudulent reviews and remove any that do appear. Phoney reviews are particularly prevalent in the restaurant sector, where diners often arrive at supposed five-star establishments only to discover one-star service.
Online platforms are now legally required to take action against fake reviews. Amazon, for instance, has already filed multiple lawsuits against brokers who facilitate these schemes. The Competition and Markets Authority (CMA) is set to enforce the ban, ensuring that companies that breach the new law face investigation and potential penalties from regulators.
The regulations aim to eliminate the shock consumers experience when they discover additional fees at checkout. Now, when purchasing train tickets or ordering takeout, the total price will be clear from the start, preventing unexpected charges from dampening the shopping experience.
Notably, while mandatory fees must be included in the headline price, optional fees—such as those for airline seats and luggage upgrades—are still permitted. This distinction allows consumers to understand the true cost of their purchases without being misled.
The UK government has emphasized that these new laws will not only create greater transparency but also empower consumers to confidently compare products and services. By ensuring that all mandatory fees are visible upfront, consumers can make informed decisions without the fear of hidden costs.
As the retail landscape continues to evolve, these reforms represent a significant step towards protecting consumers from deceptive practices. The government hopes that this will foster a more competitive market where compliant businesses can thrive without being undercut by those engaging in misleading practices.
With online reviews playing a crucial role in consumer purchasing decisions, the ban on fake reviews is particularly timely. As consumers increasingly turn to digital platforms for shopping, the integrity of online reviews will be paramount in maintaining trust between businesses and their customers.
In summary, the UK's ban on fake reviews and hidden fees marks an important milestone in consumer protection, aiming to create a fairer marketplace where transparency reigns. As these regulations take hold, consumers can expect a more straightforward shopping experience, free from the pitfalls of hidden costs and misleading reviews.
