The British government announced on Tuesday that it plans to crack down on the practice of so-called “drop pricing”, which is used by online retailers to increase costs for customers before they pay for the products or services they order, Reuters reported.

Rishi Sunak’s government said the measures would be put up for public consultation, and the government plans to amend the Digital Markets, Competition and Consumer Protection Act to give authorities more powers to tackle “trickle-down pricing”.

This practice, defined as a way of displaying only a portion of the actual cost of a product or service, then revealing the full price as the customer progresses through the purchase process, is used by many businesses, from food delivery to accommodation to airlines. when selling plane tickets or those selling tickets for concerts and other events.

The consumer rights group described the practice as a “dishonest way to squeeze extra money” from customers, saying it was even more troubling in the context of the housing crisis, when buyers are often trying to stick to a fixed budget, Yahoo News reported.

The UK can also crack down on fake reviews

The UK government also wants to change the Digital Markets and Consumer Protection Act so that authorities can crack down harder on fake reviews and misleading labels that make it difficult for consumers to evaluate a product.

For example, Sunak’s chief executive wants to make it harder for “unscrupulous” sellers to force customers to pay for subscriptions to an online service they no longer need. London authorities have estimated that this practice forces Britons to pull out of their pockets 1.6 billion pounds every year.

Between April 2020 and April 2021, 69% of UK consumers said they had experienced a problem with a product or service ordered online.

The UK government estimates that new regulatory measures will save consumers £9.7 billion over the next 10 years.

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