The UK government has banned hidden fees from online purchases that are estimated to cost consumers around £2.2bn ($2.8bn/€2.5bn) per year.
Businesses, including ticketing agencies, are now required to include any mandatory fees in the headline price. In some cases, these fees have been found to be more than 25% of the product price.
The act also bans the use or commissioning of fake reviews and comes into force under reforms in the Digital Markets, Competition and Consumer Act 2024.
In September 2023, a report for the Department of Business and Trade found that 45% of providers in the entertainment sector included at least one mandatory “dripped” fee.
Under the new requirements, any administration or booking fees on ticket websites must be flagged to customers upfront.
It is aimed to give buyers more confidence and security in their purchases.
“From today consumers can confidently make purchases knowing they are protected against fake reviews and dripped pricing,” said Minister for Competition and Markets, Justin Madders.
“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.”
Secure Tickets from Authorised Retailers (STAR), which is the self-regulatory body for the UK’s entertainment ticketing industry, questioned the government’s Competition and Market Authority (CMA) on how per transaction charges should be treated when considering inclusive pricing.
“The CMA has indicated that it will be providing further information at a later date to respond to questions raised,” STAR chief executive Jonathan Brown told TheTicketingBusiness.
“However, it is unclear at this point whether STAR’s question is one that they will be coming back to.
“There is one direct reference to ticketing in the examples of unfair practice.
“It is made clear that it would be both a ‘material omission’ and an ‘omission of material information from an invitation to purchase’ to omit telling a customer that a ticket they were buying was for a seat with a restricted view.
“We recommend that all members check their current practices against the new legislation and guidance to ensure they are complying.”
In regard to drip pricing, Brown states that it is possible for the CMA to take the view that ticket prices cannot be reasonably calculated in advance and that any per transaction charges must be included in the headline price and not shown separately.
Ticket sales for Oasis’ highly anticipated reunion tour were marred by the impact of hidden fees.
The band and ticketing provider Ticketmaster received severe criticism for prices that surged after fans joined the queue.
Some fans ended up paying more than double what they thought they would.